30.01.2020 BDB will support the transition to a green economy

The Bulgarian Development Bank is ready to direct a financial resource towards green projects and innovations related to the achievement of the climate change strategies set out in the European Green Deal, a radio interview of the Bank's Strategic Development Advisor Sophia Kassidova revealed.

"Over the next 5 years, at least 15% of our loan portfolio will be directed towards green projects in the economy, transport and energy. This priority was also announced by BDB CEO Stoyan Mavrodiev during the Euromoney Central and Eastern European Forum in Vienna earlier this month. The Bank has already gained experience in the financing of alternative energy projects and in the implementation of the National Energy Efficiency Program by renovating multi-family residential buildings.

The European Investment Bank (EIB) will also be an important factor in this process. It has already announced that it is suspending the financing of coal projects and will exit all solid fuel projects with the exception of gas by the end of 2021. However, such a solution is difficult for many banks, businesses and some of the less developed economies and the more energy-intensive coal sector. National climate spending is a key investment for the future and can also be funded with a loan.

BDB is a natural partner of EIB in Bulgaria and has the potential to create the necessary organizational, European and international capacity through its cooperation with other banks in order to assist the government in achieving these goals, "said Sophia Kassidova." The bank has partnerships and can draw on good experience to support the economic strategy for the transition to a low-carbon economy and the Bulgarian business," said the Strategic Adviser.

The 'European Green Deal' envisages a radical reduction in greenhouse gas emissions by 2050, which is a serious challenge for a number of sectors. The European Commission plans to invest more than 1 trillion euros in green investments by 2030. According to Sophia Kassidova and other experts, about 50% of this amount will come from a redirection from the European budget. Banks, funds, national funding and private investment will be the other sources for the transition to carbon neutrality.