People & Profit – Inflation, exiting fossil fuels & navigating politics: The challenges facing the EBRD
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For more than 30 years, the European Bank for Reconstruction and Development (EBRD) has been investing in countries in Central and Eastern Europe. It’s since expanded into the Middle East, Central Asia and North Africa and has plans to move into Sub-Saharan Africa too. The EBRD’s President Odile Renaud-Basso discussed some of the challenges facing the development lender, including climate finance, transitioning away from fossil fuels and the Bank’s pro-democracy mandate.
In the week that the European Commission designated natural gas and nuclear fuels as sustainable sources of energy, Renaud-Basso said there would be “no political support” for the EBRD to change its ban on investing in nuclear plants.
She described the Bank’s approach to funding natural gas as “quite pragmatic”, saying it was needed for certain projects to “accelerate decarbonisation”.
“The evolution of minds is very rapid, so it’s more and more difficult, and subject to strict conditions.”
Renaud-Basso also defended the EBRD’s mandate to support multi-party democracy, which has faced criticism in respect of the Bank’s investments in Turkey.
“I think our support, for example to the private sector, which is what we do mainly in Turkey… is also a way to support democratic strands, diversity in public opinion”.
“It’s not always black and white, and very often remaining committed to the country and supporting development of the private sector is also a way to support democratic development,” she told FRANCE 24.
On the issue of inflation, the EBRD president noted that the pace of price rises had doubled in many of its countries of operation since the beginning of the Cvoid-19 pandemic.
While acknowledging the potential impact on its investments, Renaud-Basso said the big issue was an increase in inequality, which she warned could lead to political instability.
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