EBRD InvestEU Framework for Biofuels Development (EBRD-55127)

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Bulgaria
  • Croatia
  • Czech Republic
  • Estonia
  • Greece
  • Hungary
  • Latvia
  • Lithuania
  • Poland
  • Romania
  • Slovakia
  • Slovenia
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
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
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."
Voting Date
May 29, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Borrowers not available at the time of disclosure.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
  • Energy
  • Industry and Trade
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 76.01 million
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.
Currency conversion note:
Bank reported 70
Converted using 2024-03-22 exchange rate.
Loan Amount (USD)
$ 76.01 million
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.
Currency conversion note:
Bank reported 70
Converted using 2024-03-22 exchange rate.
Project Cost (USD)
$ 76.01 million
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.
Currency conversion note:
Bank reported 70
Converted using 2024-03-22 exchange rate.
Primary Source

Original disclosure @ EBRD website

Updated in EWS Dec 26, 2024

Disclosed by Bank Mar 22, 2024

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

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, the EBRD/InvestEU Biofuels Framework aims to facilitate financing of higher risk investments for the development of projects by private sector clients in the EBRD's EU Countries of Operations in the wide biofuels market comprising both liquid and gaseous fuels produced from biomass. Examples of such biofuels include biodiesel, bioethanol, sustainable aviation fuel (SAF) and biomethane. Potential clients and beneficiaries of the EBRD loans may include private sector entities engaged in biofuel related sectors like waste management, agriculture, energy, and fuels, as well as financial investors looking to launch new biofuels projects or upgrade existing facilities.

The key objective of the Framework is to support the development of biofuel market in the EBRD EU countries of operations, which remains small and undeveloped and to support financing of biofuel projects, which cannot be financed without InvestEU guarantee due to their higher level of risk and/or innovative nature. InvestEU guarantees provide necessary support by de-risking the investment and providing lower cost of financing that will enable roll-out of projects that would otherwise not be economically viable. Financing will include but not be limited to capex, working capital, cost of acquisition, construction and upgrade of biofuel plants and associated infrastructure, procurement of equipment, short-term loans required for biofuel projects development.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

As stated by the EBRD, ESDD will be addressed on a project-specific basis, taking into account various types of biofuel feedstocks and ensuring compliance with the sustainability criteria outlined for biofuels within the EU RED-III Directive. Additionally, EBRD will utilize a risk-based approach in conducting internal due diligence to ensure compliance with the Invest EU Framework on a project by project basis. Each sub-project under the framework will be categorized as per the ESP.

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

As stated on the project disclosure page, the EBRD loans can be provided in EUR or in local currency of an EU member state which is an EBRD country of operation. Minimum and maximum individual loan amount are set at respectively EUR 2 million and EUR 30 million (or the equivalent in another currency).

Under the EBRD-EC Contribution Agreement up to EUR 60 million is provided for Technical Assistance (TA) to support the roll-out of the guarantee and or contribute to the InvestEU policy objectives. Sub-projects under the Framework will have access to these funds.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by the EBRD, type of clients to include private sector companies, implementing biofuel projects within the scope of the proposed Framework in accordance with the EBRD-EC InvestEU Guarantee Agreement.

Specific private actors are not available at the time of disclosure.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

EBRD Team Leader:

Filip Prodanovic
Email: prodanof@ebrd.com
Phone: +44 782 831 4674
Website: http://www.ebrd.com
Address: 5 Bank St, London E14 4BG, United Kingdom

ACCESS TO INFORMATION

You can request information by emailing: accessinfo@ebrd.com or by using this electronic form: https://www.ebrd.com/eform/information-request

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent.

You can contact the PCM at: pcm@ebrd.com or you can submit a complaint online using an online form at: http://www.ebrd.com/eform/pcm/complaint_form?language=en

You can learn more about the PCM and how to file a complaint at: http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html

How it works

How it works