In order to secure capital investments for the research of critical and strategic raw materials, the European Bank for Reconstruction and Development (EBRD) and the European Union launched a joint mechanism with the aim of mobilizing up to 100 million euros of investments.
Reducing the risk of potential disruptions in the supply chain requires developing sustainable projects for critical raw materials, which the European Union is already working on. As stated, this will ensure that the industrial sectors have the necessary resources while maintaining the environmental and social standards of the European Union.
“The new joint facility will support the objectives of the EU’s Critical Raw Materials Act and the so-called REPowerEU plan.
The EBRD will provide 25 million euros, and as stated, the European Union will add its contribution from the Horizon Europe Program within the InvestEU framework. The goal of this Fund is to mobilize an additional 50 million euros.
To clarify, Horizon Europe is a key research and innovation funding program until 2027. It is focused on climate change and helps to achieve the United Nations Sustainable Development Goals, and it also encourages the competitiveness and growth of the European Union. It also supports the creation and better dissemination of quality knowledge and technologies.
The aforementioned Fund will rely on the extensive experience of the EBRD in financing projects in the field of mining. In this way, initial investments in operations in the member countries of the European Union where the Bank operates, namely Bulgaria, Croatia, Estonia, Greece, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia, will be facilitated.
In addition to these countries, EBRD economies that are outside the European Union and are included in the Horizon Europe program are also included. This means Serbia, Bosnia and Herzegovina, Montenegro, North Macedonia, Albania, Armenia, Kosovo*, Georgia, Moldova, Tunisia, Turkey and Ukraine.
“Since activities in mining research still do not bring income, the most appropriate instrument of support is capital. The EBRD expects to invest in five to 10 small companies engaged in mining (small and medium-sized enterprises, medium-sized enterprises or small medium-sized enterprises), that is, engaged in the exploration of critical raw materials in eligible countries,” the EBRD website states.
The mentioned Fund will also contribute to the key priority of the Strategy for the EBRD’s mining sector, which is support for the research and production of metals and minerals that are needed for the transition to green energy and digitization.
The funds from the fund will be used to finance responsible research activities, in accordance with high standards in the field of climate, management, environmental protection and social impact. All projects will be subject to strict compliance rules with the Paris Agreement, as well as the EBRD’s environmental and social protection policy.
As stated, the Fund is part of the EBRD’s Junior Mining Framework adopted in July this year, which includes 150 million euros in capital and quasi-capital investments in mining companies in the early stages of development. As the EBRD previously wrote, investments will be primarily focused on the quality of the transition with good management, while promoting better management at the levels of individual sub-projects and at the national level.
Energy portal
Source: energetskiportal.rs
