Technical assistance for implementing Paris goals

Explanation

Policy level, climate-related technical assistance

The EBRD has set up an NDC Support Programme, which supports countries of operation in developing, improving and implementing their Nationally Determined Contributions (NDCs). The programme’s support for NDC implementation includes policy and legal analysis, updating action plans in line with NDC sectoral targets, and development of regulations in accordance with the NDC.

Notably, the information available regarding support for revising NDCs leaves it open to interpretation whether by assisting to improve a country’s NDC the Bank implies an increase in ambition. According to the Bank,[1] NDC ambition is difficult to raise without the country first having defined a long-term pathway and goals. That is because many countries have already updated their NDCs but want to see progress on implementation before committing to higher ambition. The Bank’s approach to raising ambition in the interim is therefore to engage generally at sectoral levels, where the Bank is well positioned to support on implementation.[2] A future update of the 2019 informational material on the NDC Support Programme should clarify this crucial point.

The programme also engages with the private sector on NDCs. Through the organisation of platforms for discussion and recommendations for policymakers, the programme aims to support knowledge sharing and create stronger narratives around NDCs.

The EBRD is a founding member of the NDC Partnership. In that capacity, the EBRD provides assistance to countries in implementing NDCs and LTSs. The GET 2.1 approach commits the EBRD to further work with other organisations, including MDBs, to strengthen national mid- and long-term climate and sustainability goals as included in the Long-Term Strategies (LTSs), NDCs and related policy documents. The EBRD proposed the idea and has been a driving force of the Joint MDB LTS Program (to be hosted by the World Bank) launched at COP28 in 2023, which aims to coordinate support to countries and subnational actors in the formulation of Long-Term Low-Emissions Development Strategies (LT-LEDS) and other long-term strategies.

Fossil fuel subsidy reform

While the EBRD’s Annexes to Implementing the Green Economy Transition – Technical Guide specify that capacity building and information dissemination on fossil fuel subsidy reform are eligible activities, it is unclear whether the EBRD currently has any technical assistance programmes in this area. The EBRD acknowledges the continued prevalence of fossil fuel subsidies in its regions of operation. As a consequence, the EBRD should consider putting in place a specific technical assistance programme to address this issue.

Other technical assistance

The EBRD has a large offer of technical assistance across sectors that goes beyond broader policy level NDC support, with a focus on the private sector and subsovereign clients, in accordance with its mandate. Technical assistance has been used through integrated approaches, such as programmes channelling low-carbon investments in conjunction with capacity building activities. This includes programmes such as the Green Economy Finance Facilities, where technical support is offered, such as for identifying green investment opportunities and evaluating investment compliance with climate criteria. Other such programmes include the Finance and Technology Transfer Centre for Climate Change (FINTECC), which provides technical support to help companies implement climate technologies, and the EBRD Green Cities Programme, which provides technical support to city administrators for the development of Green City Action Plans and ensure infrastructure investments and policy measures identified can be implemented effectively by them.

The EBRD Corporate Climate Governance Facility assists companies in improving their climate resilience and governance through technical support, training, and funding. Its goal is to embed climate risk management into corporate strategies, to promote sustainable practices and environmental responsibility. Also of note, the Legal Transition Programme’s energy, climate change and sustainability focus area works to strengthen legal and regulatory systems for climate action in EBRD regions. They focus on the provision of policy advice and technical assistance to sovereigns, corporates and standard-setting bodies to develop policies, laws, and institutions that facilitate sustainable development and robust climate change responses. This includes work on energy market legal reform and the development of ESG disclosure guidelines. Finally, the CEI Fund at the EBRD supports economic and social development in Southeastern and Eastern Europe by financing technical cooperation projects. It aims to promote regional integration and sustainable growth through targeted investments and capacity building efforts.

Recommendations:

• Considering the EBRD itself acknowledges the continued prevalence of fossil fuel subsidies in its areas of operation, it should consider implementing a technical assistance program for energy subsidy reform, such as the World Bank Group’s (WBG) Energy Subsidy Reform Facility (ESRF).
• The EBRD’s NDC Support Programme should clarify that it is explicitly working to raise the ambition of NDCs to be consistent with the 1.5 °C temperature goal.

[1] Information obtained directly from the Bank.

[2] Information obtained directly from the Bank.