ECA GBAC Newsletter – January 2022

Green buildings represent one of the biggest investment opportunities of the next decade. Building space is expected to double by 2060, with most of the growth in residential construction, particularly in middle-income countries. IFC estimates a need for nearly $25 trillion in green building investments by 2030, with $881 billion needed in Europe and Central Asia (ECA). Green buildings offer multiple opportunities for financial institutions – financing is needed for construction, mortgages, and home improvement loans. By investing in green buildings banks can expand their client base, build green portfolios, and access liquidity through green bonds. Read more

In an op-ed for CFI, Emmanuel Nyirinkindi, IFC’s Vice President for Cross-Cutting Solutions talks about how climate change is the opportunity to change course and one of the greatest commercial opportunities we may see in our lifetime. Read more

IFC Green Banking Academy in Europe and Central Asia has launched its website that will serve as a one-stop shop with information and support for financial institutions interested in climate finance. The website provides free access to climate finance materials, webinars, training courses, knowledge exchange, and best practices to help financial institutions in the ECA region succeed in their green transformation.

IFC’s Green Bond Technical Assistance Program in partnership with the International Capital Market Association is launching a new cohort of the Facilitated Executive Online Training on Green, Social and Sustainability Bonds (GSS). The program’s duration is from March 14 till April 1.

The training, designed specifically for banks from emerging markets, will seek to strengthen the bank staff's foundational skills in green and sustainable finance. The
program is offered free of charge to emerging market banks that have been vetted and
selected by IFC.

For more information, please visit program website. If interested to apply, please contact
Oleg Bardyak obardyak@ifc.org.

Ukraine needs to invest up to EUR100 billion by 2030 to meet its decarbonization targets. What are the opportunities for banks? To discuss how green finance can be a profitable business, IFC in partnership with the Austrian Federal Ministry of Finance jointly with Ukraine’s Banks Association hosted a business breakfast with CEOs of the country’s leading financial institutions. IFC reaffirmed its readiness to continue providing advisory services to help the banking sector become “greener”. Read more (in Russian)

The Central Bank of Azerbaijan Republic (CBA) became a new member of the IFC-supported Sustainable Banking and Finance Network (SBFN). SBFN and IFC will support CBA in its journey of transition to a green and sustainable financial system for Azerbaijan. For more information about SBFN, visit the Network’s website.

To help tap the green investments potential in Georgia, IFC jointly with the country’s Ministry of Environment and Agriculture and the Parliamentary Committee for Environmental Protection organized an online round table to review the opportunities and challenges in Georgia’s green finance sector and discuss those findings with the public and private sector representatives. The event was organized in partnership with the Austrian Federal Ministry of Finance.

Check out this short video produced by IFC to learn what makes a bond “green” and how green bonds can help emerging markets mobilize funds to tackle climate change.

Climate urgency increases the demand for zero-emission transport. With up to 90% of air pollution in cities coming from transport, governments are committing to decarbonization and the manufacturers are investing massively into replacing traditional internal combustion engines with battery power in all types of vehicles, from scooters to heavy trucks.

Join us on March 2 for an online discussion to learn about the business opportunity that the green transportation sector presents for banks in the region. Register for the event

SusFinForum is an annual event for banks, microfinance institutions, asset managers, project
sponsors, investors and financiers in the EECA region that are committed to creating a social and environmental impact in the region. The Forum will provide an opportunity to:

• learn about the latest developments and practices in the regional markets,
• join the networking platform, connect with colleagues, and set up partnerships,
• participate in breakout sessions and share your expertise.

For more information and to register for the event, please visit Forum website.

The ocean economy is expected to double to 2030 to $3 trillion. But climate change has put the health of the ocean at risk. Innovative financing solutions like blue bonds and blue loans are key to the sustainability of the ocean. To support the growth of these financial instruments, IFC launched the Guidelines for Blue Finance to provide guidance on financing the blue economy. Read the report

• 5 Trends to Watch in Climate-Aligned Finance in 2022 (GreenBiz)
• For Green Finance, Climate Policy is the New Monetary Policy (World Economic Forum)
• Oil and Gas Bankers Confront Their Own Energy Transition (Reuters)
• HSBC Pumps $100 Million Into Bill Gates' Climate Tech Investment Fund (GreenBiz)
• Explainer: What is the EU's Sustainable Finance Taxonomy? (Reuters)
• The Rise of Greenflation (The Atlantic)