.jpg)
14 January 2026 at 11:06 pm IST
The European Commission and the European Bank for Reconstruction and Development (EBRD) signed a major guarantee agreement worth up to €76.75 million aimed at encouraging companies in neighbouring regions to adopt stronger environmental, social and governance (ESG) practices. The initiative is part of broader efforts to support sustainable growth, competitiveness and job creation while fostering greener and fairer global value chains. The new agreement is supported by the European Fund for Sustainable Development Plus (EFSD+) and aligns with the EU’s Global Gateway strategy, which mobilises investments in clean energy, digital and transport sectors, as well as health, education and research. Through this partnership, the European Commission and EBRD will work with local banks to channel financing to small and medium-sized enterprises (SMEs) and mid-sized companies in regions including the Western Balkans, the Eastern Neighbourhood, North Africa and the Middle East, Türkiye, Central Asia and Mongolia. Under the programme, financing instruments such as the Supply Chain Solutions Framework (SCSF) and the Risk Sharing Framework (RSF) will provide short-term financing to suppliers, support capital expenditure, working capital needs, acquisitions and business expansion. The objective is to help companies that meet ESG criteria gain better access to finance and strengthen their ability to compete in evolving markets, particularly as global demand grows for environmentally and socially responsible business practices. EU officials emphasised that protecting the environment and citizens’ wellbeing is a key part of the bloc’s cooperation with partner countries. By supporting local firms in adopting sustainable practices, they expect not only environmental benefits but also expanded economic opportunities and improved job prospects. The initiative reflects the EU’s commitment to integrating sustainability into economic development processes beyond its own borders, helping partner countries accelerate their transitions toward cleaner and more equitable economies.
