"Challenges and best practices in financing to accelerate industry decarbonisation", OECD Series of Webinars on low carbon hydrogen and industry decarbonisation, 14 June 2023

1. Challenges and best
practices in financing
to accelerate industry
decarbonisation
OFFICIAL USE

2. EBRD economies are reducing their carbon intensity,
but more needs to be done
The GHG intensity of EBRD
economies is higher than that of
the rest of the world.
GHG intensity is generally decreasing
at different rates, though some
economies are becoming more
GHG intensive.
270
216
371
357
521
362
652
549
477 642
1124
744
917
760
837
822
1329
1128
3137
2630
OFFICIAL USE

3. Climate investment flows in the EBRD region need to increase by
~$400 billion annually by 2030
3
OFFICIAL USE

4. We are on track to meet our
climate commitments
OFFICIAL USE
Double the
mobilisation
of private sector climate
financing by 2025.
Align activities with
the objectives of the
Paris Agreement by
the end of 2022.
Private indirect
mobilisation doubled
between 2021-2022
The EBRD is fully
Paris aligned.
We are also helping our
clients become Paris
aligned.
Increase the share of
green financing to more
than fifty per cent of
ABI by 2025.
Since 2021,
green investments
have been 50% of our
ABI
of €23.2 billion.
OFFICIAL USE

5. EBRD supports the green transition
in 36 economies
FINANCED
2,800+
green projects since 2006
COMMITTED
€52 billion
of green financing since
2006
AVOIDING
3.8+ million
tonnes of material use
annuallysince 2013
SAVING
470+ million
m3 of water
annuallysince 2013
REDUCING
128 million
tonnes of CO2 annually
since 2006
MOBILISED
€1 billion
of estimated GET AMI in
2022
OFFICIAL USE

6. EBRD’s approach provides investments and policy dialogue
OFFICIAL USE

7. We support decarbonization across the entire economy
OFFICIAL USE

8. Climate impact is achieved by combining climate corporate governance,
investments and the deployment of new technologies
8
OFFICIAL USE
What's new?
Help the integration of climate
change into strategic, financial and
technological decision-making of
energy-intensive corporates
What do we aim to do?
Support corporate transformative
low-carbon shifts via
1. Uptake of high impact
climate technologies
2. Behavioural change in
corporate governance

9. We support the design and implementation of strategic climate plans,
policies, regulations and sectoral plans that send clear market signals
Areas of EBRD support Key deliverables
Strategic climate plans under UNFCCC and
Paris Agreement commitments
• Nationally Determined Contributions
• Long-term Strategies
• Sectoral low-carbon pathways
National and sub-national policies, regulations,
standards and market instruments
• Energy efficiency standards
• Financial sector regulations
• Corporate climate governance policies
• Tariff and subsidy reforms
Sectoral implementation plans • Renewable energy and district heating plans
• Sustainable mobility plans
• Technology roadmaps
• Green City Action Plans
• Just transition plans
Institutional capacity building and legal support • Primary and secondary climate legislations
• Implementation and tracking arrangements
• Knowledge sharing platforms and products
OFFICIAL USE

10. 10
The High Impact Programmes (GCF + CTF) helps corporates invest in
climate technologies and think strategically about climate opportunities and risks
Clients Barriers to action High Impact Programme solutions
Corporate
Financial
• Limited access to commercial funding
• Early-mover costs
• Large upfront costs of adopting new technologies
Sustainability-linked
corporate loans
EBRD loans are supported by a donor tranche
of 25-30% of TPV. Impact premium is offered
as a discount on the interest rate paid to GCF
upon achieving impact milestones, like
technology and governance improvements.
Strategic
• Insufficient corporate capacity to assess climate
risks and opportunities
• Lack of climate targets and investment plans
• Inexperience with climate disclosure principles
Low-carbon corporate
strategies
The EBRD supports integrating climate change
into clients’ strategic, financial, and
technological decision-making. This includes
assessing climate risks and opportunities,
setting climate governance principles, building
a Paris aligned investment plan and setting
climate commitments.
Government
+
Industry
Policy
• Uncertainty around decision-makers’ climate
commitments and key policy actions
• Lack of sector-wide stakeholder engagement
Low-carbon sector
roadmaps
The EBRD engages stakeholders to identify key
policy actions. Roadmaps evaluate the current
emissions performance and present low-
carbon scenarios.
OFFICIAL USE

11. 11
The High Impact Programme also helps corporates innovate with guidance for
green transition finance bonds
OFFICIAL USE
RATIONALE
Transition & sustainably-linkedfinance showed impressive growth
– now at the centre of a heateddebate
Helps corporates access the sustainable finance market and
realize the climate transition plans
OBJECTIVE
PARTNERS
NEXT
“Evangelization” withCFOs& finance depts. Followedby tailored
trainingand collaboration withsectorassociations(TBC)
TIMELINE Launch in September2023 with events preceding andfollowing
SECTOR
ASSOCIATIONS

12. 12
The High Impact Programme: Green Climate Fund (GCF)
OFFICIAL USE
IMPACT
PRODUCT
BUDGET
Reduced emissions and behavioral change in corporates
Low carbon corporate
strategy
Sustainability-linked
loans
Low carbon sectoral
road map
$5.4 Million $1 Billion $1.5 Million
17 million t. CO2eq avoided
TARGET
Morocco Tunisia Jordan
Armenia
Serbia
Kazakhstan
Uzbekistan
COUNTRIES
ELIGIBILITY
Sectors
Manufacturing (energy-intensiveindustrial sector)
Agribusinessand relatedvaluechains,incl. logistics
Mining (non-fossil energy) metalsand minerals
Impact
GHG emissions savingsof10,000 tCO2 eq pa. or improved carbon
intensityby20%
Governance CommitmenttoClimateCorporateGovernanceActions
Technology
Technologyaudit with IndustryBest AvailableTechnologieson at least
TechnologyReadinesslevel 7

13. 13
The High Impact Programme: Climate Technology Fund
OFFICIAL USE
300,000 tonnes CO2eq/year saved
ELIGIBILITY
Sectors
Construction Materials (Cement,Lime, Ceramics), Fertilizer, Chemicals,
Iron and steel, Aluminium,Glass, Pulp and paper,Wastemanagement,
Cold logistics, Cold storage, Transport,intermodal operationsand modal
shift
Impact
GHG emissions: Transport sector: >5ktCO2 eq pa; Industrial sectors:
>15ktCO2 eq pa
Governance CommitmenttoClimateCorporateGovernanceActions
Technology
Technologyaudit with IndustryBest AvailableTechnologieson at least
TechnologyReadinesslevel 7
COUNTRIES
Morocco
Tunisia
Egypt
Kazakhstan
Ukraine
Turkey
IMPACT Reduced emissions and behavioral change in corporates
TARGET
PRODUCT
BUDGET
Low carbon corporate
strategy
Sustainability-linked
loans
Low carbon sectoral
road map
10 investments 3 Roadmaps
10 strategies

14. OFFICIAL USE 14
InvestEU supports projects in EU countries of operations contributing to EU policy objectives
*EBRDCountries of Operation(CoOs)–EU MemberStates:Bulgaria,Croatia,Czech Republic,Estonia,Greece,Hungary,Latvia,Lithuania,Poland,Romania,Slovakia, Slovenia (EU12CoOs)
PROGRAMME
InvestEU programme aims to mobilise public and private investments in the EU through the unfunded
budgetary guarantees supporting operations aligned with the EU Green Deal and other EU policies.
INSTRUMENTS As an InvestEU Implementing PartnerEBRD will deploy EUR 450m of first-loss guarantees supporting
its debt operations in EU12 CoOs*.
OBJECTIVE InvestEU will allow EBRD to support projects that face difficulties with access to financing on viable
terms due to their real or perceived technology, market or other types of risk.
BASIC TERMS Loans with investEU guarantee may have a longer maturity (up to 25 years).
Competitive pricing reflecting benefits of the guaranteewill be determined on a case by case basis.
Energy generation
and grids
&REPowerEU
Municipal &
Environmental
Infrastructure
Circular economy
Areas of strategic
importance
Energy Efficiency, Clean
Energy and Low Carbon
Innovation in Industry
Just transition
Selectedeligible areas under Sustainable Infrastructure Window Structures

15. OFFICIAL USE 15
• Guarantee allocation to accelerate financing for investments in the next generation of climate
mitigation measures and business models in the energy sector and energy-intensive industries
and tocover projectsthat contributetoa faster transitionto lowcarbon economies.
• All EBRD’s non-EU Countries of Operations*,incl. in North Africa, Central Asia, WesternBalkans.
• To support new climate technologies, critical raw materials, as well as the rollout of more mature
technologies that are still far from reaching a critical levels of uptake in many EBRD countries
dueto specific marketissues.
• The Guarantee alleviates barriers for lenders enabling investments that would otherwise either
not be financed or would doso on termsnot aligned with their full developmental impacts.
• Loans benefitting from theguaranteewill havea maturityof up to 20 years.
• TechnicalAssistance
● Continued rollout of renewables
● Grids and storage solutions
● Sustainable fuels
● Hard to abate industrial activities
● Critical raw materials
● Municipal infrastructure
● Transport & logistics
● Industries & commercial activities
● Construction & tourism
● Agribusiness & foodvalue chains
Targeted Sectors
Structure
Responds to barriers that inhibit more investments to electrify and decarbonize economies
• Insufficient green financing flows nad high risk perceptions
• High ‘green premium’ of new climate technologies without an established track-record
• Accelerated deployment of more mature technologies which need to see faster rollout or demonstrate
new business models
• Lack of supply chains, implementation track record, certain offtake, support frameworks
• Recent capex cost inflationary trends for new investments in the energy sector
• Untested policy and market contexts
• Constrained global supply of critical raw materials due to the inherent high risks of mining exploration
• Short supply of commercially viable projects due to policy gaps and lack of technology awareness
Rationale
SITG– Skin in thegame
*For a full listof EBRD’s Countries of Operations seethe followinglink:https://www.ebrd.com/where-we-are.html
EFSD+ programmes (High-Bar & Resilience) support projects in non-EU countries of
operation

16. OFFICIAL USE 16
EBRD RRF Co-Financing Framework supports projects in Greece
PROGRAMME
EUR 500 m of concessional loans funded from the Greek Recovery and
Resilience CorporateLoan Facility to finance in Greece until December 2025
private sector projects that contribute to at least 1 of the 5 strategic pillars
of the Greek Recovery and Resilience Plan:
INSTRUMENT
EBRD provides its own account debt financing
along with RRF concessional loans pari passu and
pro rata. Borrowers or sponsors are required to
contributeat least 20% of project costs with their
own funds.
USE OF
PROCEEDS
Underlying projects have to target mainly fixed capital,human capital, and
natural capital. They can cover intangibleassets such as R&D, data,
intellectual property & skills.
BASIC TERMS
Eligible projects benefit from the low fixed interest rate applied to the concessional RRF
tranche. RRF loan concessional pricing is subject to compliance with EU stateaid rules

17. THE LOW-CARBON HYDROGEN ECONOMY IN NUMBERS
17
SEMED
2030 2040
2.35 2.01
3,007 10,314
20.2 69.5
2,729 8,049
WESTERN BALKANS
2030 2040
4.10 3.46
24 170
0.3 1.9
0 0
Levelised cost of hydrogen, €/kg
Total hydrogen production/demand, ktpa
Installed electrolyser capacity required, GW
Hydrogen exports, ktpa
23 GW
TOTAL ELECTROLYSER CAPACITY
REQUIRED BY 2030
> €60 billion
INVESTMENT REQUIRED BY 2030
> 65 – 70%
SEMED AND CAUCASUS ARE BIG
EXPORTERS OF HYDROGEN
CENTRAL ASIA
2030 2040
2.74 2.31
20 373
0.2 3.0
0 80
CAUCASUS
2030 2040
2.93 2.49
207 1,065
1.8 9.3
158 702
OT TOTAL PRODUCTION WILL BE
EXPORTED
TÜRKIYE
2030 2040
2.91 2.47
59 726
0.6 6.9
35 281
H2
OFFICIAL USE

18. DEMAND AND PRODUCTION OF LOW-CARBON HYDROGEN
18
23 GW
TOTAL ELECTROLYSER CAPACITY
REQUIRED BY 2030
> €60 billion
INVESTMENT REQUIRED BY 2030
30 – 35 GW
RENEWABLES CAPACITY REQUIRED
FOR HYDROGEN BY 2030
OFFICIAL USE

19. Gianpiero Nacci
EBRD – ClimateStrategyand Delivery
Director,SustainableBusinessand Infrastructure
naccig@ebrd.com
www.ebrd.com
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 OECD Series of Webinars on low-carbon hydrogen and
industry decarbonisation
 Session 2: Current (and best) practices in financing
industry decarbonisation
OFFICIAL USE