Cross Regional: Market Feasibility Study to evaluate the potential of leveraging Green and Sustainability-linked Bonds for municipalities in Croatia, Czech Republic, Estonia, Latvia, Lithuania, Poland (EBRD-18515)

  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
  • Croatia
  • Czech Republic
  • Estonia
  • Latvia
  • Lithuania
  • Poland
  • Romania
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
  • Climate and Environment
  • Energy
  • Finance
  • Infrastructure
  • Law and Government
  • Technical Cooperation
The service or industry focus of the investment. A project can have several sectors.
Investment Amount (USD)
Not Disclosed
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ EBRD website

Updated in EWS Jan 17, 2024

Disclosed by Bank Dec 14, 2023

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the EBRD, almost all cities and their municipalities in EBRD's EU Countries of Operations face significant investment needs to build more sustainable infrastructure, to increase levels of environmental protection and improve climate resilience. These challenges necessitate municipalities and other sub-national governments to increase their investments in green infrastructure and leverage innovative ways to finance the development gap. One of the key measures to address this gap is to expand the sources of financing for these sub-sovereign entities. Capital markets financing instruments like Green bonds and Sustainability-Linked bonds can serve as a catalyst to mobilise and allocate financing together with EU's scarce public funds to finance climate-related activities.

The main objective of this project is to evaluate the market potential and feasibility of implementing Green and Sustainability-Linked bonds for municipalities within Croatia, Czech Republic, Estonia, Latvia, Lithuania, Poland and Romania. This project will help to identify the existing market and legal barriers preventing municipalities from leveraging capital markets, including eligibility requirements for accessing capital markets via bond issuance processes, capacity needs for tapping the debt capital market instruments, pipeline development of underlying Green and Sustainability-Linked projects, green awareness in the local industries; and setting up the Green and Sustainability-Linked Frameworks and processing of third party opinion processes for an issuer. In view of the above, this project will explain how tapping the Green and Sustainability-Linked bond market would provide key benefits to municipal issuers and will develop a Green and/or Sustainability-Linked bond pilot to be issued by a municipality, including the mapping of environmental/climate eligible projects, leveraging EU Cohesion Policy funds and subject to demand on a best-efforts basis.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Contact Information
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How it works