View source for European Bank for Reconstruction and Development

{{Short description|Financial institution which support more than 30 countries}}
{{distinguish|text=the [[European Investment Bank]] (EIB) or the [[Council of Europe Development Bank]] (CEB)}}
{{Under construction}}
{{Infobox company
| name            = European Bank for Reconstruction and Development
| logo            = EBRD logo (2).png
| logo_size       = 200px
| image           = EBRD hq in London.jpg
| image_caption   = EBRD headquarters in London
| type            = [[International financial institution]]
| tax_id          = 
| registration_id = 
| founded         = {{start date and age|1991}}
| location        = [[London]], {{postcode|EC|2}}<br>United Kingdom
| key_people      = {{Ill|Odile Renaud-Basso|fr}} {{small|([[President (corporate title)|President]])}}<br>[[Jacques Attali]] {{small|(First [[President (corporate title)|president]])}}
| area_served     = 
| products        = 
| services        = 
| focus           = 
| net_income      = US$1.1 billion (2016)<ref name="ar-ebrd.com">{{cite web|url=http://2016.ar-ebrd.com/in-numbers/|title=In numbers - EBRD Annual Report 2016|website=ar-ebrd.com}}</ref>
| assets          = US$59.15 billion (2016)<ref name="ar-ebrd.com"/>
| equity          = US$16.27 billion (2016)<ref name="ar-ebrd.com"/>
| endowment       = 
| num_volunteers  = 
| num_employees   = 3000<ref>{{cite web|url=http://www.ebrd.com/news/publications/annual-report/annual-report-2016.html|title=EBRD Annual Report 2016|date=10 May 2017|website=ebrd.com}}</ref>
| num_members     = 
| subsid          = 
| owner           = 
| former_name     = 
| website         = {{url|ebrd.com}}
| dissolved       = 
| footnotes       = 
}}

The '''European Bank for Reconstruction and Development''' ('''EBRD''') is an [[international financial institution]] founded in 1991. As a multilateral developmental [[investment bank]], the EBRD uses [[investment]] as a tool to build [[Market economy|market economies]]. Initially focused on the countries of the former [[Eastern Bloc]] it expanded to support development in more than 30 countries from Central Europe to Central Asia. Similar to other multilateral development banks, the EBRD has members from all over the world (North America, Africa, Asia and Australia, see below), with the biggest single shareholder being the [[United States]], but only lends regionally in its countries of operations. Headquartered in [[London]], the EBRD is owned by 71 countries and two [[European Union]] institutions, the newest shareholder being [[Algeria]] since October 2021. Despite its public sector shareholders, it invests in private enterprises, together with commercial partners.

The EBRD is not to be confused with the [[European Investment Bank]] (EIB), which is owned by EU member states and is used to support EU policy. EBRD is also distinct from the [[Council of Europe Development Bank]] (CEB).

== History of the EBRD ==
Located in London, the EBRD was intended at its beginning to focus on the [[Transition economy|switch from centrally planned economy to market based economy]] in the [[Central and Eastern Europe|Central and Eastern European countries]] by investing in the private sector, mainly banks, industries and businesses, and by promoting policies that would favor them.<ref name=":0">{{Cite book |last=Lessambo |first=Felix I. |url=https://www.worldcat.org/oclc/919430034 |title=International financial institutions and their challenges : a global guide for future methods |date=2015 |isbn=978-1-137-52270-2 |location=New York City, NY |oclc=919430034}}</ref> It was created as a result of the end of the Cold War because of particular issues regarding the international system in place, the historical and political context at the time.<ref name=":1">{{Cite journal |last=Barria |first=Lilian A. |last2=Roper |first2=Steven D. |date=22/2003 |title=Economic Transition in Latin American and Post-Communist Countries: A Comparison of Multilateral Development Banks |url=http://link.springer.com/10.1023/B:IJPS.0000031235.74193.a4 |journal=International Journal of Politics, Culture, and Society |language=en |volume=17 |issue=4 |pages=619–638 |doi=10.1023/B:IJPS.0000031235.74193.a4 |issn=0891-4486}}</ref> Furthermore, its recipient countries had to insure that they would work towards "multi-party democracy and political pluralism"<ref name=":2">{{Cite journal |last=Shields |first=Stuart |date=2015 |title=Shields, S. (2015). The European Bank for Reconstruction and Development and the lessons from Eastern Central Europe for Middle East/North African Transition |url=https://dergipark.org.tr/en/download/article-file/417244 |journal=Spectrum: Journal of Global Studies}}</ref> in which was considered as one of the main particularity of the EBRD distinguishing the latter from other financial institutions.<ref name=":0" /> Firstly, notably advocated by European political actors such as the French President [[François Mitterrand|Mitterrand]] in 1989, the idea of creating this financial institution involving the European countries started before the [[fall of the Berlin Wall]]. The reception of this proposition was mitigated depending on the country, for instance it received hostility from the British whereas the French were important proponents of the project and influenced the process.<ref name=":1"/> In January 1990, negotiations about the EBRD objectives, its lending policy regarding the public and private sectors, started and involved all the EU countries at the time, as well as various other European countries, non-European countries and representatives from the [[European Union|EU]] and the [[European Investment Bank]]. The [[Soviet Union]] was represented by its own delegation in the process and thus participated in the negotiations as well as the USA. Later on, because of dissensions on the political and economic objectives of the institution, the inclusion of the Soviet Union was threatened. Considered as short negotiations, the agreement (for reasons relating to the situation in Eastern Europe and to a wave of privatization across Europe) leading to its creation was signed on 29 May 1990 by actors such as 40 states as well as two European organizations<ref name=":3">{{Cite journal |last=Weber |first=Steven |date=1994 |title=Origins of the European Bank for Reconstruction and Development |url=https://www.cambridge.org/core/product/identifier/S0020818300000801/type/journal_article |journal=International Organization |language=en |volume=48 |issue=1 |pages=01–38 |doi=10.1017/S0020818300000801 |issn=0020-8183}}</ref> and by March 1991 took its first effects as the bank was inaugurated. The creation of the EBRD has led to the financing of various projects in the years following its first operations, for instance there were twenty projects in 1992 in which the EBRD provided financing worth [[European Currency Unit|ECU]] 2.1 billion.<ref name=":3"/>

== Structure ==
Divided between its headquarters located in [[London]], and field offices located elsewhere, the European Bank for reconstruction and development is made of a three-tier structure composed of firstly, the president and the staff, secondly the Board of Governors and finally the [[Board of Directors]]. The bank’s structure has changed over time, because of concerns about competition within the institution. In fact, in the beginning of the 90s, there were two different banking divisions (on one side, the merchant banking related to the private sector and on the other side the development banking side working mostly with the public sector). Consequently, the two divisions came to be merged into a single one, substituting this structure with another one instead dividing the bank with seven policy and country regional sub-divisions.<ref name=":1" />

=== Board of Governors ===
Representatives from each member state compose this board, they have authority power.

=== Board of Directors ===
The Board of Directors consists of 23 members elected by the Board of Governors. These members can not be on the Board of Governors. Its function is to direct the general operations of the bank, notably:<ref name=":0"> 

* Approve the budget; 
* In accordance with the Board of Governors, establishing policies and making other decisions, loans, investments,...;
* Prepare the work of the Board of Governors;
* Submit yearly for approval the audited accounts to the Board of Governors.

=== President ===
The EBRD is composed of many members with voting powers, from European and non-European states to the membership of other institutions such as the European Investment Bank, however depending on the geographical location of each member, voting rights differ. More precisely, European and other creditor members hold a majority voting power. At its beginning, the EBRD was owned by more than 40 members, in 2015 the number of countries owning it was 61. and as of March 2022, there were 71 countries as owners.<ref>{{Cite web |title=EBRD: staff, structure, history |url=https://www.ebrd.com/who-we-are |access-date=2022-03-29 |website=www.ebrd.com |language=en}}</ref>

The following presidents have served the EBRD to date (as of March 2022).

* [[Jacques Attali]]: April 1991 – June 1993
* [[Jacques de Larosière]]: September 1993 – January 1998
* [[Horst Köhler]]: September 1998 – April 2000
* [[Jean Lemierre]]: July 2000 – July 2008
* [[Thomas Mirow]]: July 2008 – July 2012
* [[Suma Chakrabarti]]: July 2012 – July 2020
* {{Ill|Odile Renaud-Basso|fr}}: 2020 – ''present''

=== Membership ===
To become a member of the bank, a country needs to fit the EBRD's Articles of Agreement. These Articles stipulate that a country can only become a Member State if it is a state in Europe or a non-European member of the [[International Monetary Fund|IMF]]. Institutions like the European Union and the EIB also participate in the bank operations. Since its fondation the EBRD has almost doubled in membership size.<ref>{{Cite web |date=30 January 2020 |title=European Bank for Reconstruction and Development (EBRD) |url=https://crsreports.congress.gov/product/pdf/IF/IF11419}}</ref> The latest accessions to the bank are countries located in Africa. One of these is [[Egypt]], who obtained a loan of the European Bank for Reconstruction and Developpment in March 2022.<ref>{{Cite web |date=7 March 2022 |title=European Bank for Reconstruction and Development (EBRD) Assesses Low-Carbon Hydrogen in Egypt |url=https://hydrogen-central.com/european-bank-reconstruction-development-ebrd-hydrogen-egypt/}}</ref>

=== Shareholders ===

{| class="wikitable sortable" style="text-align:right"
|+ EBRD shareholders<ref>{{Cite web|url=https://www.ebrd.com/shareholders-and-board-of-governors.html|title = European Bank for Reconstruction and Development Shareholders and Board of Governors}}</ref>
! shareholder !! date joined !! capital subscription
|-
| style="text-align:left" | {{flag|Albania}} || 18 December 1991 || €{{val|30010000}}
|-
| style="text-align:left" | {{flag|Algeria}} || 19 October 2021 || €{{val|2030000}}
|-
| style="text-align:left" | {{flag|Armenia}} || 7 December 1992 || €{{val|14990000}}
|-
| style="text-align:left" | {{flag|Australia}} || 30 March 1991 || €{{val|300140000}}
|-
| style="text-align:left" | {{flag|Austria}} || 28 March 1991 || €{{val|684320000}}
|-
| style="text-align:left" | {{flag|Azerbaijan}} || 25 September 1992 || €{{val|30020000}}
|-
| style="text-align:left" | {{flag|Belarus}} || 10 June 1992 || €{{val|60020000}}
|-
| style="text-align:left" | {{flag|Belgium}} || 10 April 1991 || €{{val|684320000}}
|-
| style="text-align:left" | {{flag|Bosnia and Herzegovina}} || 17 June 1996 || €{{val|50710000}}
|-
| style="text-align:left" | {{flag|Bulgaria}} || 28 March 1991 || €{{val|237110000}}
|-
| style="text-align:left" | {{flag|Canada}} || 28 March 1991 || €{{val|1020490000}}
|-
| style="text-align:left" | {{flag|China}} || 15 January 2016 || €{{val|29000000}}
|-
| style="text-align:left" | {{flag|Croatia}} || 15 April 1993 || €{{val|109420000}}
|-
| style="text-align:left" | {{flag|Cyprus}} || 28 March 1991 || €{{val|30010000}}
|-
| style="text-align:left" | {{flag|Czech Republic}} || 1 January 1993 || €{{val|256110000}}
|-
| style="text-align:left" | {{flag|Denmark}} || 28 March 1991 || €{{val|360170000}}
|-
| style="text-align:left" | {{flag|Egypt}} || 28 March 1991 || €{{val|21010000}}
|-
| style="text-align:left" | {{flag|Estonia}} || 28 February 1992 || €{{val|30010000}}
|-
| style="text-align:left" | [[European Investment Bank]] || 28 March 1991 || €{{val|900440000}}
|-
| style="text-align:left" | {{flag|European Union}} || 28 March 1991 || €{{val|900440000}}
|-
| style="text-align:left" | {{flag|Finland}} || 28 March 1991 || €{{val|375180000}}
|-
| style="text-align:left" | {{flag|France}} || 28 March 1991 || €{{val|2556510000}}
|-
| style="text-align:left" | {{flag|Georgia}} || 4 September 1992 || €{{val|30010000}}
|-
| style="text-align:left" | {{flag|Germany}} || 28 March 1991 || €{{val|2556510000}}
|-
| style="text-align:left" | {{flag|Greece}} || 29 March 1991 || €{{val|195080000}}
|-
| style="text-align:left" | {{flag|Hungary}} || 28 March 1991 || €{{val|237110000}}
|-
| style="text-align:left" | {{flag|Iceland}} || 29 May 1991 || €{{val|30010000}}
|-
| style="text-align:left" | {{flag|India}} || 11 July 2018 || €{{val|9860000}}
|-
| style="text-align:left" | {{flag|Ireland}} || 28 March 1991 || €{{val|90040000}}
|-
| style="text-align:left" | {{flag|Israel}} || 28 March 1991 || €{{val|195080000}}
|-
| style="text-align:left" | {{flag|Italy}} || 28 March 1991 || €{{val|2556510000}}
|-
| style="text-align:left" | {{flag|Japan}} || 2 April 1991 || €{{val|2556510000}}
|-
| style="text-align:left" | {{flag|Jordan}} || 29 December 2011 || €{{val|9860000}}
|-
| style="text-align:left" | {{flag|Kazakhstan}} || 27 July 1992 || €{{val|69020000}}
|-
| style="text-align:left" | {{flag|Kosovo}} || 17 December 2012 || €{{val|5800000}}
|-
| style="text-align:left" | {{flag|Kyrgyzstan}} || 5 June 1992 || €{{val|21010000}}
|-
| style="text-align:left" | {{flag|Latvia}} || 18 March 1992 || €{{val|30010000}}
|-
| style="text-align:left" | {{flag|Lebanon}} || 17 July 2017 || €{{val|9860000}}
|-
| style="text-align:left" | {{flag|Libya}} || 16 July 2019 || €{{val|9860000}}
|-
| style="text-align:left" | {{flag|Liechtenstein}} || 28 March 1991 || €{{val|5990000}}
|-
| style="text-align:left" | {{flag|Lithuania}} || 5 March 1992 || €{{val|30010000}}
|-
| style="text-align:left" | {{flag|Luxembourg}} || 28 March 1991 || €{{val|60020000}}
|-
| style="text-align:left" | {{flag|Malta}} || 28 March 1991 || €{{val|2100000}}
|-
| style="text-align:left" | {{flag|Mexico}} || 28 March 1991 || €{{val|45010000}}
|-
| style="text-align:left" | {{flag|Moldova}} || 5 May 1992 || €{{val|30010000}}
|-
| style="text-align:left" | {{flag|Mongolia}} || 9 October 2000 || €{{val|2990000}}
|-
| style="text-align:left" | {{flag|Montenegro}} || 3 June 2006 || €{{val|5990000}}
|-
| style="text-align:left" | {{flag|Morocco}} || 28 March 1991 || €{{val|24640000}}
|-
| style="text-align:left" | {{flag|Netherlands}} || 28 March 1991 || €{{val|744350000}}
|-
| style="text-align:left" | {{flag|New Zealand}} || 19 August 1991 || €{{val|10500000}}
|-
| style="text-align:left" | {{flag|North Macedonia}} || 21 April 1993 || €{{val|17620000}}
|-
| style="text-align:left" | {{flag|Norway}} || 28 March 1991 || €{{val|375180000}}
|-
| style="text-align:left" | {{flag|Poland}} || 28 March 1991 || €{{val|384180000}}
|-
| style="text-align:left" | {{flag|Portugal}} || 5 April 1991 || €{{val|126050000}}
|-
| style="text-align:left" | {{flag|Romania}} || 28 March 1991 || €{{val|144070000}}
|-
| style="text-align:left" | {{flag|Russia}} || 9 April 1992 || €{{val|1200580000}}
|-
| style="text-align:left" | {{flag|San Marino}} || 7 June 2019 || €{{val|2030000}}
|-
| style="text-align:left" | {{flag|Serbia}} || 19 January 2001 || €{{val|140310000}}
|-
| style="text-align:left" | {{flag|Slovakia}} || 1 January 1993 || €{{val|128070000}}
|-
| style="text-align:left" | {{flag|Slovenia}} || 23 December 1992 || €{{val|62950000}}
|-
| style="text-align:left" | {{flag|South Korea}} || 28 March 1991 || €{{val|300140000}}
|-
| style="text-align:left" | {{flag|Spain}} || 28 March 1991 || €{{val|1020490000}}
|-
| style="text-align:left" | {{flag|Sweden}} || 28 March 1991 || €{{val|684320000}}
|-
| style="text-align:left" | {{flag|Switzerland}} || 29 March 1991 || €{{val|684320000}}
|-
| style="text-align:left" | {{flag|Tajikistan}} || 16 October 1992 || €{{val|21010000}}
|-
| style="text-align:left" | {{flag|Tunisia}} || 29 December 2011 || €{{val|9860000}}
|-
| style="text-align:left" | {{flag|Turkey}} || 28 March 1991 || €{{val|345150000}}
|-
| style="text-align:left" | {{flag|Turkmenistan}} || 1 June 1992 || €{{val|2100000}}
|-
| style="text-align:left" | {{flag|Ukraine}} || 13 April 1992 || €{{val|240110000}}
|-
| style="text-align:left" | {{flag|United Arab Emirates}} || 23 September 2021 || €{{val|2030000}}
|-
| style="text-align:left" | {{flag|United Kingdom}} || 28 March 1991 || €{{val|2556510000}}
|-
| style="text-align:left" | {{flag|United States}} || 28 March 1991 || €{{val|3001480000}}
|-
| style="text-align:left" | {{flag|Uzbekistan}} || 30 April 1992 || €{{val|44120000}}
|- class="sortbottom"
! 71+2 total !! (28 March 1991) !! €{{val|29748890000}}
|}

== Financing ==

=== Donors ===
According to the EBRD 2020 Sustainability Report, donors provided €589 million to support EBRD activities, taking the form of grants, loans and risk-mitigating instruments.

The EBRD funds come mainly from bilateral donors, from the [[Climate Investment Funds]] (CIF), the [[European Union]] (EU), the [[Global Environment Facility]] (GEF), and the [[Green Climate Fund]] (GCF).<ref>{{cite web |title=EBRD Sustainability Report |url=https://www.ebrd.com/news/publications/sustainability-report/ebrd-sustainability-report-2020.html |website=ebrd.com |publisher=EBRD |access-date=26 March 2022}}</ref>

==Environmental sustainability==
The EBRD is unique among development banks for two reasons. First, it was the first multilateral development bank to have an explicit environmental mandate in its charter (since 1995),<ref>{{cite web|url=https://www.ciel.org/reports/the-european-bank-for-reconstruction-and-development-an-environmental-progress-report-executive-summary-a-ciel-critique-of-ebrds-environmental-policies-november-1995-2/|title=The European Bank for Reconstruction and Development: An Environmental Progress Report, Executive Summary (A CIEL Critique of EBRD's Environmental Policies) (November, 1995)|website=www.ciel.org|date=November 1995|access-date=20 February 2020}}</ref> and second, in that it will not finance thermal coal mining and coal-fired electricity generation due to their environmental impact.<ref>{{cite web|url=https://www.ft.com/content/7d0814f0-fd6f-11e8-ac00-57a2a826423e|title=Development bank halts coal financing to combat climate change|website=www.ft.com|date=12 December 2018|access-date=19 February 2020}}</ref><ref>{{cite web|url=https://www.ebrd.com/news/2018/ebrd-puts-decarbonisation-at-centre-of-new-energy-sector-strategy.html|title=EBRD puts decarbonisation at centre of new energy sector strategy|website=www.ebrd.com|date=12 December 2018|access-date=19 February 2020}}</ref><ref>{{cite web|url=https://www.ebrd.com/what-we-do/sectors-and-topics/ebrd-energy-strategy-switch-coal.html|title=The EBRD's Energy Strategy and the switch from coal.|website=www.ebrd.com|access-date=1 October 2018}}</ref>

The following table shows the development of investment volume into the Green Economy Transition (GET) approach, in support of the Paris climate goals.

{| class="wikitable"
|-
! Year !! Total investment !! GET investment !! Ratio !! Source
|-
| 2016 || 9.4 billion EUR || 2.9 billion EUR || 31% || <ref name=ebrdAR2016>{{cite web|url=https://www.ebrd.com/documents/comms-and-bis/pdf-annual-report-2016-english.pdf|title=Annual Report 2016|website=www.ebrd.com|access-date=19 February 2020}}</ref>
|-
| 2017 || 9.7 billion EUR || 4.1 billion EUR || 43% || <ref name=ebrdAR2017>{{cite web|url=https://www.ebrd.com/documents/comms-and-bis/pdf-annual-report-2017-english.pdf|title=Annual Review 2017|website=www.ebrd.com|access-date=19 February 2020}}</ref>
|-
| 2018 || 9.5 billion EUR || 3.3 billion EUR || 36% || <ref name=ebrdAR2018>{{cite web|url=https://www.ebrd.com/documents/comms-and-bis/annual-report-2018-english.pdf|title=Annual Review 2018|website=www.ebrd.com|access-date=19 February 2020}}</ref>
|-
| 2019 || 10.1 billion EUR|| 4.6 billion EUR || 46% || <ref name=ebrd2018>{{cite web|url=https://www.ebrd.com/news/2020/ebrd-delivers-record-positive-impact-across-its-regions-in-2019.html|title=EBRD delivers record positive impact across its regions in 2019|website=www.ebrd.com|date=16 January 2020|access-date=19 February 2020}}</ref>
|}

The EBRD had pledged, prior to [[Paris Agreement|2015 Paris Agreement]], to dedicate above 40 per cent of its financing to green investment by 2020. This goal was accomplished for the first time in 2017.<ref>Mahmood, M., & Orazalin, N. (2017). Green governance and sustainability reporting in Kazakhstan's oil, gas, and mining sector: Evidence from a former USSR emerging economy. ''Journal of cleaner Production'', ''164'', 389-397.</ref> With Russia actually being the biggest donor to an NDEP Support Fund for the environments inside the bank, with total contributions amounting to €60 million. €5 million was donated by Russia in the same year of 2015.<ref>{{cite web |title=Russia overview |url=https://www.ebrd.com/where-we-are/russia/overview.html |access-date=20 April 2020}}</ref>

== Activities ==

=== Collaboration of the Bank with the European institutions and private actors ===
Not only involving the European institutions, the EBRD financed projects also implicate private actors such as firms as well as foreign investors in the process. As part of its lending policies, the EBRD mostly lends capital to the private sector as lending to the public sector is capped at 40% maximum.

=== Mediation ===
More recently, other than its original lending role, the EBRD has played a [[Mediation|mediating role]] in Europe, for instance in Moldova in 2013 and even in the Central Asian region (most notably in countries such as the Kyrgyz Republic and Tajikistan for instance) by intervening as a third party in commercial disputes which has become one of its major areas of activities. As a mediating actor, the EBRD has managed to involved other actors such as businesses and Chambers of Commerce among others. Moreover, a regional forum on commercial mediation was established by the bank as part of its work, which has managed to involved various representatives from countries in Europe and Asia, such as judges and experts for instance.<ref>{{Cite book |url=https://www.worldcat.org/oclc/1120936560 |title=International organizations and the promotion of effective dispute resolution : AIIB Yearbook of International Law 2019 |date=2019 |others=Peter Quayle, Xuan Gao |isbn=978-90-04-40741-1 |location=Leiden |oclc=1120936560}}</ref>

=== The initial focus on transition economy ===
It is notable that one of the main objectives of the European Bank for Reconstruction and Development was to become a link between the European Union, its institutions and the countries it would focus on.<ref name=":2" /> As the recipients were previously centrally planned economies, the ERBD centered through [[Transition economy|its operations]] on working with the private sector, which was the principal target of central planning.<ref>{{Cite book |last=Kilpatrick |first=Andrew |url=https://www.worldcat.org/oclc/1199584403 |title=After the Berlin Wall : a History of the EBRD, Volume 1 |date=2020 |others=Project MUSE |isbn=978-963-386-385-5 |location=New York |oclc=1199584403}}</ref> Focusing on the integration and modernisation process, as part of its projects, the EBRD has notably invested in important sectors such as telecommunications in the Central and Eastern European countries.

=== To modern challenges ===
Since the 90s, recipients of EBRD financing have diversified, in fact, from mainly targeting EEC countries, the bank has moved to the Asian continent and increasingly focused on other countries such as China.<ref name=":4">{{Cite journal |last=Obydenkova |first=Anastassia |last2=Rodrigues Vieira |first2=Vinícius G. |last3=Tosun |first3=Jale |date=2021-08-17 |title=The impact of new actors in global environmental politics: the European Bank for Reconstruction and Development meets China |url=https://www.tandfonline.com/doi/full/10.1080/14631377.2021.1954825 |journal=Post-Communist Economies |language=en |pages=1–21 |doi=10.1080/14631377.2021.1954825 |issn=1463-1377}}</ref> More generally, Suma Chakrabarti, the EBRD president from 2012 to 2020, has pushed in the beginning of the 2010s for modernizing the Bank. Reforms encompassed the Bank's structure in itself, for instance by changing the management team, and its processes (for instance about policy dialogue or methodology regarding the concept of transition) in order for them to be more efficient.<ref name=":5">{{Cite book |last=Kilpatrick |first=Andrew |url=https://www.worldcat.org/oclc/1266195846 |title=Transforming markets : a development bank for the 21st century : a history of the EBRD : Volume 2 |date=2021 |isbn=963-386-412-7 |location=New York, NY |oclc=1266195846}}</ref>

=== Sustainable market economies ===
Since the 2000s, the focus has shifted towards the issue over sustainable market economies, notably in the context of the financial crisis of 2007 which harshly impacted population and their trust in the financial institution, democracy and free market. As a result, a rethinking of the concept of transition has taken place within the EBRD and has impacted the activities of the Bank. Furthermore, the concept of transition was reviewed in 2015. In fact, it led to the idea that the ideal market economy is made of a greatly competitive, resilient and integrated market and is complemented by a good governance system conducted by a well-functioning state which has to be environmental friendly and inclusive.<ref name=":5" />

=== Related to environment and climate change ===
Gradually, climate change and sustainable development became the focus point of the European Union, then consequently found its importance as one of the main challenges that the EBRD has to tackle. It became linked to the objective of forming sustainable market economies. In 2021, Anastassia Obydenkova research has indicated that positive evolutions have been made, for instance that carbon emission from some of the states benefiting from EBRD loans have decreased.<ref name=":4" />

== EBRD key achievements since 2020<ref>{{cite web |title=EBRD Sustainability Report 2020 |url=https://www.ebrd.com/news/publications/sustainability-report/ebrd-sustainability-report-2020.html |website=ebrd.com |access-date=26 March 2022}}</ref> ==

=== Environment ===
The EBRD agreed a new green economy approach for 2021-2025 and adopted a target of becoming a majority green bank by 2025. It invested €3.2 billion in climate mitigation, climate adaptation and other activities related to environmental issues in 2020. Moreover, the EBRD signed up to the Sustainable Blue Economy Finance Principles which represent the world’s first global guiding framework for banks, insurers, and investors to invest in the ocean economy in a sustainable way.

The EBRD also aim to support the corporate transition to [[decarbonisation]], for instance in [[Poland]] (EV battery performance), in [[Turkey]] (elimination of plastics in single-use hygiene products), and in [[Ukraine]] (green supermarkets); and support green infrastructures.

=== Political and human rights standards ===
Linked to its objective of contributing to political transformation in the EBRD's country targets in which projects are financed, this institution contributes to political transformation in these same states.<ref name=":2" /> From the beginning of the negotiations that led to the creation of the EBRD, the question of democracy and human rights were included in the matter discussed. Those issues are clearly stated in the agreement.

The EBRD is devoted to strengthen its approach to human-rights and also to gender-based issues. For instance, it posted a 14.8 percent year-on-year increase in the number of projects it supports that promote gender inclusion. Moreover, the EBRD established a cross-departmental Human Rights Working Group and has developed internal human rights guidance.

=== Covid-19 response ===
The EBRD provided €802 million of support under the Vital Infrastructure Support Programme launched in April 2020, an emergency support programme for infrastructure providers which is part of its overall Solidarity Package response to [[COVID-19|Covid-19]] adopted on 13 March 2020. The package delivered emergency liquidity and the EBRD invested more than €10 billion, both in 2019 and 2020.

=== Partnerships with NGOs ===
The EBRD has signed partnership agreements with [[Oxfam]] and [[Save the Children]].

== Criticism ==

=== About the EBRD ===
In the 90s, the start of the EBRD actions have been considered as slow as the amount of money loaned was rather modest compared to what was available.<ref name=":3" />

There have been criticism regarding potential conflict of interest as it appeared that instead of focusing on public interests, some bankers' operations were influenced by their clients' needs, contrary to the objective of the EBRD.<ref name=":5" />

According to an economist named Branko Milanović, the analysis of global distribution of incomes has shown that the positive globalisation impact has mainly favoured the super-rich part of the population, thus deepening the inequalities of wealth concentration within the population. Furthermore, this uneven concentration is notably visible in the countries benefiting from the EBRD activities. This has led to a reflection over the idea of winners and loosers regarding globalisation.<ref name=":5" />

In contrast to the highlighted inclusion objective, concerns regarding inclusion, which notably involves gender equality, have been rather absent from the Bank's attributions until recently. For instance, a Strategic Gender Initiative was validated by the ERBD President in 2013 as well as various projects involving gender equality related objectives.<ref name=":5" />

NGOs have criticised the EBRD on the lack of progress the EBRD makes in its main mission, the “transition towards open and democratic [[Market economy|market economies]].”

=== Regarding its investments ===
Inequality of the lending : most projects were related to the Visegrad countries that were the ones with the most developed private sectors meaning that the ERBD was underinvesting in the countries that were the most supposed to receive its participation. For instance, those countries (Cezch Republic, Hungary, Poland) were involved in 46% of the projects signed during the 1991-1993 period.<ref name=":2" />

==== Environmentally harmful projects ====
Some [[NGO]]s have criticized the EBRD for financing projects they consider to be environmentally and socially harmful. Although it has increased its investments into [[Energy conservation|energy efficiency]] and [[sustainable energy]] in recent years, these NGOs consider the bank continues to diminish the impacts of green investments by financing [[Emission intensity|carbon-intensive]] development such as coal, oil and gas production, transportation and generation, motorways, and airports.<ref name="bankwatch.org">{{Cite web |title=European Bank for Reconstruction and Development (EBRD) |url=https://bankwatch.org/ebrd |access-date=2022-03-29 |website=Bankwatch |language=en-US}}</ref><ref>{{Cite web |date=2006-08-25 |title=The European Bank for Reconstruction and Development: An Environmental Progress Report |url=https://web.archive.org/web/20060825144737/http://www.ciel.org/Publications/summary1.html |access-date=2022-03-29 |website=web.archive.org}}</ref> Among the contested projects are the [[Ombla#Proposed power plant|Ombla power plant]] in [[Croatia]],<ref>{{Cite web |last=Gavas |first=Mikaela |date=2014-06-27 |title=Reviewing the evidence: how well does the European Development Fund perform? |url=https://odi.org/en/publications/reviewing-the-evidence-how-well-does-the-european-development-fund-perform/ |access-date=2022-03-29 |website=ODI: Think change |language=en-gb}}</ref><ref>{{Cite web |date=2013-07-10 |title=HEP and EBRD cancel loan agreement for Ombla power plant - Daily - tp… |url=https://archive.ph/27n3U |access-date=2022-03-29 |website=archive.ph}}</ref> the [[Kumtor Gold Mine]] in [[Kyrgyzstan]], and the [[Šoštanj#Power station|Šoštanj]] [[lignite]] power plant in [[Slovenia]].<ref name="bankwatch.org"/>

==== The Balkans ====
The EBRD's activities in the [[Balkans]] have attracted particular controversy and criticism,<ref>{{Cite web |date=2015-12-11 |title=Major banks put up nearly €1bn for controversial Balkan dams, says report |url=http://www.theguardian.com/environment/2015/dec/11/major-banks-put-up-nearly-1bn-for-controversial-balkan-dams-says-report |access-date=2022-03-29 |website=the Guardian |language=en}}</ref> especially when they have centered on national parks or free-flowing rivers.<ref>{{Cite web |title=Europe's Last Wild River Is About to Get Dammed |url=https://time.com/4430986/albania-vjosa-river-dam-hydropower/ |access-date=2022-03-29 |website=Time |language=en}}</ref> This has often involved the completed or proposed construction of [[Hydroelectricity|hydroelectric dams]] and road infrastructure. Indeed, a 2017 report alleged deficiencies in monitoring and mitigation measures that had been designed to lessen the environmental impact of dam projects financed by the EBRD, while, in March 2018, outdoor clothing label [[Patagonia (clothing)|Patagonia]] helped launch ''The Dam Truth'' campaign, which directly requests international banks including the EBRD to "stop investing in the destruction of Europe's last wild rivers".<ref>{{Cite web |title=Blue Heart of Europe |url=http://blueheart.patagonia.com/intl/en/take-action/ |access-date=2022-03-29 |website=Blue Heart of Europe |language=en}}</ref>

In 2011, the EBRD approved a €65 million loan to ELEM, the [[Republic of North Macedonia|Macedonian]] electricity utility, for a dam at [[Boškov Most Hydro Power Plant|Boskov Most]].<ref>{{Cite web |title=Macedonia's ELEM invites bids for Boskov Most HPP construction - EBRD |url=http://seenews.com/news/macedonias-elem-invites-bids-for-boskov-most-hpp-construction-ebrd-396208 |access-date=2022-03-29 |website=seenews.com |language=en}}</ref> The Standing Committee of the Bern Convention<ref name=":6">{{Cite web |date=2015 |title=Convention on the Conservation of European Wildlife and Natural Habitats, Standing Committee, 35th Meeting |url=https://rm.coe.int/1680746676}}</ref> requested immediate suspension of the project, with reference to the high biodiversity of the area and its importance as a core reproductive area for the [[Balkan lynx]],<ref name=":6" /> one of the most endangered mammals on the planet. In January 2017, the bank cancelled the loan saying the "conditions for disbursement were not met."<ref>{{Cite web |title=EBRD statement on Boskov Most hydro power plant |url=https://www.ebrd.com/boskov-most-cancellation |access-date=2022-03-29 |website=www.ebrd.com |language=en}}</ref><ref>{{Cite web |title=Destructive hydropower project in Macedonia loses its only source of funding |url=https://bankwatch.org/press_release/destructive-hydropower-project-in-macedonia-loses-its-only-source-of-funding |access-date=2022-03-29 |website=Bankwatch |language=en-US}}</ref>

Again in North Macedonia, the EBRD was criticised by environmentalists<ref>{{Cite web |title=Macedonia: EBRD's planned destruction of Lake Ohrid Biosphere Reserve |url=https://theecologist.org/2015/oct/27/macedonia-ebrds-planned-destruction-lake-ohrid-biosphere-reserve |access-date=2022-03-29 |website=theecologist.org |language=en}}</ref> after plans were announced to bisect National Park [[Galičica]] in the UNESCO [[Ohrid-Prespa Transboundary Biosphere Reserve]] with an A3 express road, which would have required certain zones of protection in the national park to be downgraded. Scientists from North Macedonia and across the world signed a declaration in opposition to this and other projects proposed for the Ohrid-Prespa region,<ref>{{Cite web |date=2015-04-15 |title=DECLARATION ON PRESERVING THE WORLD NATURAL AND CULTURAL HERITAGE OF OHRID |url=https://ohridsos.org/declaration-on-preserving-the-world-natural-and-cultural-heritage-of-ohrid/ |access-date=2022-03-29 |website=Ohrid SOS |language=en}}</ref> a message that was reinforced by a Joint Reactive Monitoring Mission from the World Heritage Centre, ICOMOS and the IUCN, which requested total cancellation of proposed A3 road sections.<ref>{{Cite web |last=Centre |first=UNESCO World Heritage |title=UNESCO World Heritage Centre - Document - Report of the joint World Heritage Centre/ICOMOS/IUCN Reactive Monitoring mission to the World Heritage property Natural and Cultural Heritage of the Ohrid Region (the former Yugoslav Republic of Macedonia), 9 - 14 April 2017 |url=https://whc.unesco.org/en/documents/158740/ |access-date=2022-03-29 |website=UNESCO World Heritage Centre |language=en}}</ref> This recommendation was underlined by the [[World Heritage Committee]] at its 41st session in Kraków.<ref>{{Cite web |last=Centre |first=UNESCO World Heritage |title=41 COM 7B.34 - Decision |url=https://whc.unesco.org/en/decisions/7036/ |access-date=2022-03-29 |website=UNESCO World Heritage Centre |language=en}}</ref> Eventually, in February 2018, the Republic of North Macedonia abandoned plans for the road, redirecting the EBRD's funds to other infrastructure projects.<ref>{{Cite web |last=Centre |first=UNESCO World Heritage |title=Natural and Cultural Heritage of the Ohrid region |url=https://whc.unesco.org/en/list/99/ |access-date=2022-03-29 |website=UNESCO World Heritage Centre |language=en}}</ref>

=== Regarding the targeted countries ===
 Even though, its major objectives is to push for democracy and respect of human rights, the EBRD has been accused of not working towards those goals by not applying enough pressure and even « holding its annual meetings in dictator-run countries ».<ref name=":0" /> Furthermore, reports have highlighted the fact that an important part of the loans provided by the EBRD go to countries with authoritarian leaders as of the beginning of 2022, including states such as Belarus or Egypt among others, and this despite its major objective of promoting democracy.<ref>{{Cite news |last=Pitel |first=Laura |last2=Fleming |first2=Sam |date=2022-01-30 |title=Does the EBRD still finance freedom? |work=Financial Times |url=https://www.ft.com/content/71f715e9-d9ef-4641-8936-4ed5495e09be |access-date=2022-03-29}}</ref>

==== 2014 sanctions against Russia ====
The EBRD announced on 23 July 2014 that it would suspend new investment projects in Russia, following an earlier declaration by the [[European Council]].<ref name="web.archive.org">{{Cite web |date=2014-07-29 |title=EBRD statement on operational approach in Russia [EBRD - News and events] |url=https://web.archive.org/web/20140729143341/http://www.ebrd.com/pages/news/press/2014/140723b.shtml |access-date=2022-03-29 |website=web.archive.org}}</ref> The European Council declaration was made in the context of the [[2014 pro-Russian unrest in Ukraine]].<ref>{{Cite web |date=2014 |title=European Council conclusions on external relations |url=http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ec/143990.pdf}}</ref> As of 2014 [[Russia]] has been the biggest funding recipient of all countries. In 2013, the Russian Federation received €1.8 billion for investments from the EBRD and 1 billion € from the EIB. Russia employed the funds to finance a variety of projects like pipeline valves, property acquisitions, and a loan to a hypermarket chain. Two Russian projects were awaiting funding from the EBRD: a €300 million plan for promoting energy efficiency, and a $180 million loan to lease agricultural and forestry equipment.<ref>{{Cite web |date=2014-07-16 |title=EU poised to cut funding to Russia and widen sanctions over Ukraine conflict |url=http://www.theguardian.com/world/2014/jul/16/eu-cut-funding-sanction-russia-ukraine-banks-assets |access-date=2022-03-29 |website=the Guardian |language=en}}</ref> The bank stated that it will continue to manage on-going projects in Russia.<ref name="web.archive.org"/> Despite denying Russia new funds the EBRD continues to insist on its 6.1% of ownership in the [[Moscow Stock Exchange]], seeking profits from Russia with the [[Privatisation of the Soviet economy]].<ref>{{Cite book |url=https://www.worldcat.org/oclc/988167038 |title=The unwinding of the globalist dream : EU, Russia and China |date=2018 |others=Steven Rosefielde |isbn=978-981-322-206-9 |location=Singapore |oclc=988167038}}</ref>

==== Azerbaijan's oil and gas sector ====

Building [[Southern Gas Corridor]], European countries and companies support gas export from [[Azerbaijan]] and contribute to finance Azerbaijan's government.<ref>{{Cite web |last=Welle (www.dw.com) |first=Deutsche |title=In Azerbaijan, EU focuses on energy instead of democracy {{!}} DW {{!}} 08.10.2013 |url=https://www.dw.com/en/in-azerbaijan-eu-focuses-on-energy-instead-of-democracy/a-17145518 |access-date=2022-03-29 |website=DW.COM |language=en-GB}}</ref><ref>{{Cite news |date=2017-10-18 |title=EBRD board approves $500 mln loan for TANAP gas pipeline project |language=en |work=Reuters |url=https://www.reuters.com/article/europe-gas-ebrd-idUKL8N1MR4YS |access-date=2022-03-29}}</ref> The [[Ilham Aliyev|Aliyev]] regime is considered by many [[Non-governmental organization|NGOs]] and watchdogs organizations as [[Human rights in Azerbaijan|repressive]] and activists and journalists are regularly arrested on false charges and imprisoned.<ref>{{Cite web |date=2016-05-24 |title=Azerbaijan: Bank Chief Should Raise Rights Issues |url=https://www.hrw.org/news/2016/05/24/azerbaijan-bank-chief-should-raise-rights-issues |access-date=2022-03-29 |website=Human Rights Watch |language=en}}</ref><ref>{{Cite journal |date=2016-10-20 |title=Harassed, Imprisoned, Exiled: Azerbaijan’s Continuing Crackdown on Government Critics, Lawyers, and Civil Society |url=https://www.hrw.org/report/2016/10/20/harassed-imprisoned-exiled/azerbaijans-continuing-crackdown-government-critics |language=en}}</ref> The [[International Federation for Human Rights]] (FIDH) wrote in 2015, that "for more than a decade Azerbaijan has made shameless use of [[caviar diplomacy]] to charm European governments, its most important oil and gas clients".<ref>{{Cite web |title='Azerbaijan is turning into a dictatorship – we shouldn't fall for its caviar diplomacy' |url=https://www.fidh.org/en/region/europe-central-asia/azerbaijan/azerbaijan-is-turning-into-a-dictatorship-we-shouldn-t-fall-for-its |access-date=2022-03-29 |website=International Federation for Human Rights |language=en}}</ref> The EEC BankWatch warns that "Developing Shah Deniz stage 2 and the Southern Gas Corridor is likely to cement further the oppressive structures of the Aliyev government".<ref>{{Cite web |title=Pipedreams: Public subsidies for Lukoil in Azerbaijan (report by Bankwatch Network, Jan. 2015) by Both ENDS - Issuu |url=https://issuu.com/both_ends/docs/bankwatch_pipedreams-lukoil-jan2015 |access-date=2022-03-29 |website=issuu.com |language=en}}</ref>

The EBRD has invested over 3 billion euros ($3.5 billion) in 177 projects in Azerbaijan.<ref>{{Cite web |date=2021-06-30 |title=EBRD invested $3.5bn in 177 projects in Azerbaijan [PHOTO] |url=https://www.azernews.az/business/180690.html |access-date=2022-03-29 |website=AzerNews.az |language=en}}</ref> The EBRD approved three loans for the [[Shah Deniz gas field]] (US$200 million, US$250 million and US$100 million) as well as a US$500 million loan for the [[Trans-Anatolian gas pipeline]] (TANAP), and stated its financial support to the [[Trans Adriatic Pipeline]] (TAP) could amount to EUR 1.2 billion.<ref>{{Cite web |title=Southern Gas Corridor |url=https://bankwatch.org/project/southern-gas-corridor-euro-caspian-mega-pipeline |access-date=2022-03-29 |website=Bankwatch |language=en-US}}</ref>

== See also ==
{{Portal|Banks}}
*[[Development Finance Institution]]
*[[Green Climate Fund]]
*[[Sustainable development]]
*[[Ukeep]]
*[[Irakli Kovzanadze]], chairman of the Task Force on corporate governance of banks in Eurasia (2007–2009)

==References==

{{Reflist}}

== External links ==
* {{commons category-inline}}
* {{official|http://www.ebrd.com/ }}
* [https://web.archive.org/web/20111229065356/http://bicusa.org/ Bank Information Center]
* [https://web.archive.org/web/20070808073720/http://www.buyusa.gov/uk/en/178.html US Commercial Service Liaison office to EBRD]
* [http://www.bankwatch.org Central and Eastern European Bankwatch network of civil society groups monitoring and lobbying on public Bank projects and policies]
* [http://balkanrivers.net/en Balkan Rivers]

{{Authority control}}
{{International development and investment banks}}

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