Ooni Koda
  1. Home
  2. /
  3. Newsfeed
  4. /
  5. EIB: Advancing sustainable finance in Central, Eastern and...

EIB: Advancing sustainable finance in Central, Eastern and South-Eastern Europe

June 11, 2024

The European Investment Bank (EIB) released the extensive research conducted by the Vienna Initiative working group on climate change and financial stability, entitled Greening the financial sector: A Central, Eastern and South-Eastern European perspective. The report provides valuable insights and recommendations on navigating the complexities of climate-related risks and fostering sustainable financial practices across Central, Eastern, and South-Eastern Europe (CESEE).   The study highlights the significant impact of limited environmental, social and governance data availability in CESEE, which reduces banks’ ability to effectively manage climate risks and undermines effective prudential supervision. While large corporations within the European Union have successfully adapted to robust disclosure requirements and are meeting the increasing demands of environmental, social and governance standards, companies — especially microenterprises and small and medium-sized enterprises (SMEs), which are prevalent in the region — often lack the information and awareness needed to understand the climate and financial risks they face.   EIB Vice-President Ambroise Fayolle said: “The report underscores the critical role of the financial sector in driving the transition to a more sustainable economy and achieving the European Union’s green transition goals. Coordinated efforts to unlock the potential of sustainable finance in the CESEE region are crucial for driving sustainable development. As the EU climate bank, the EIB is fully committed to providing continued support to businesses and facilitating the transition to renewable resources.”   Foreign-owned local subsidiaries could act as catalysts in developing sustainable finance across CESEE, mirroring best practices from their home countries, provided that parent banks apply their risk management frameworks to these subsidiaries. Moreover, the report addresses key regulatory and supervisory issues, highlighting the need for robust oversight and stress testing of banks’ activities related to climate risks.   The report also delves into the decarbonisation of industrial sectors and buildings, with a special focus on the electricity sector. It identifies investment barriers, regulatory complexities and financing opportunities for facilitating the green transition in CESEE. The share of renewables in electricity demand, for instance, is set to increase from around 30% today to 50% by 2030, and to 75-85% by 2050. CESEE countries need an estimated €8 billion of investment in low-carbon technologies per year by 2030.   “The report provides a roadmap for CESEE countries to align their financial sectors with sustainability principles,” added EIB Chief Economist Debora Revoltella. “Addressing data gaps across Europe is imperative to enhance comparability and effectively tackle challenges by developing the necessary capacities and financial strategies.”    

Read in full - click here
EVA Bucharest: The Virtual Reality arenas that can build real connections between colleagues

In a world where remote, hybrid, or flexible work has become the norm, connections between colleagues outside the office are more important than ever. Recent studies show that these bonds boost performance, engagement, and employee loyalty, and companies that understand this are increasingly investing in shared experiences. It’s not just about fun; it’s an essential […]

Romanian far-right MEP Diana Șoșoacă attends Russia Today anniversary in Moscow

Romanian far-right, pro-Russian member of the European Parliament Diana Șoșoacă was present in Moscow on October 19, where she participated in the 20th anniversary of the Russia Today television station, an event attended by president Vladimir Putin. The MEP’s presence in Moscow was announced by the party she leads, SOS Romania, and presented as a […]

Intelligence Service warns of disinformation campaign after explosion at Bucharest apartment block

The Romanian Intelligence Service (SRI) has warned of a coordinated online disinformation campaign spreading false information about the recent explosion at the apartment building in Bucharest’s Rahova district, which killed three people and injured 15 others.  In a statement released on Monday, October 20, SRI said that in recent days, numerous conspiracy...

Romania’s Madrigal Choir returns to Spain in November

The “Madrigal – Marin Constantin” National Chamber Choir will perform in Spain for the first time in 31 years as part of a special tour celebrating Romania’s National Day and the long-standing diplomatic ties between the two countries. Between November 24 and 30, under the direction of Anna Ungureanu, the choir will hold concerts in […]

Exim Banca Românească intensifies dialogue with the business environment for the development of tailored financial solutions

Exim Banca Românească will organize, in the coming period, a series of meetings with representatives of the business communities in the main economic centres of the country, an initiative that is part of the Bank’s strategic endeavour to strengthen the partnership with the business environment and to gather relevant market perspectives, to underpin the development […]

22 kg of cannabis found in passenger’s luggage at Bucharest airport

Romanian Border Police have seized roughly 22 kilograms of cannabis at Bucharest’s Henri Coandă International Airport (Otopeni) after discovering the drugs in the checked luggage of a 35-year-old Albanian citizen arriving from Athens, Greece. According to the official statement, officers from the Bucharest Airports...