The EBRD and the EU will mobilize up to EUR 100 million for investments in raw materials - The financing also includes Serbia

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 EUR 100 million of investments.

Reducing the risk of potential supply chain disruptions 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 EUR 25 million, 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 EUR 50 million.

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, while also boosting the competitiveness and growth of the European Union. It also supports the creation and better dissemination of quality knowledge and technologies.

The mentioned Fund will rely on the extensive experience of the EBRD in financing mining projects. This way, initial investments in operations in the European Union member countries 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, Georgia, Moldova, Tunisia, Turkey and Ukraine.

- Since activities in mining exploration 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), i.e. engaged in the exploration of critical raw materials in eligible countries - according to the EBRD website.

The mentioned Fund will also contribute to the key priority of the Strategy for the EBRD's mining sector, which is to support the research and production of metals and minerals that are needed for the transition to green energy and digitization.

The funds will be used to finance 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 EUR 150 million 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.

EBRD Evropska banka za obnovu i razvoj Beograd

European Bank for Reconstruction and Development

EBRD

Capital Investments for Research of Critical Raw Materials

Capital Investments for Research of Strategic Raw Materials

Critical Raw Materials

Strategic Raw Materials

Law on Key Raw Materials

REPowerEU Plan

Horizon Europe

InvestEU Framework

Junior Mining Framework