BOOSTING CIRCULAR ECONOMY IN THE PRIVATE SECTOR ACROSS THE EBRD - - PowerPoint PPT Presentation

BOOSTING CIRCULAR ECONOMY IN THE PRIVATE SECTOR ACROSS THE EBRD REGION Workshop – Driving Towards Circularity

Bratislava, 6-7 November 2017

Sumeet Manchanda

Principal, Energy Efficiency and Climate Change team

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Russian Federation Kazakhstan Mongolia —Kyrgyz Republic —Tajikistan —Moldova —Jordan Azerbaijan —Morocco Belarus Ukraine Romania Serbia —Kosovo Georgia— Armenia— Tunisia— Croatia— Bosnia & H.— Montenegro— Albania— Macedonia FYR —Turkmenistan —Bulgaria Estonia— Latvia— Lithuania— Poland— Slovenia— Slovakia — Hungary — Uzbekistan Egypt— Greece Cyprus Turkey

What is the EBRD

• €30 billion capital base
• €41 billion portfolio
• €9.2 billion average annual

business in the past 3 years

• Multilat

ilateral al financing ing instit titution tion established in 1991 to support transition to market economies

• Owned by 66 countries, the EU and the EIB

3 key operational principles

• Sound banking
• Transition impact
• Environmental sustainability

—Lebanon

Mainstreaming green financing EBRD cross-sectoral strategies

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• Since 2006 the EBRD has adopted cross-sectoral strategies
• to mainstream across the Bank’s projects, and
• to increase the share of the Bank’s business represented by

measu asures s whic ich h enhance ance the efficien icient use of ener ergy and d resou sources es (water, materials) and contribute to limiting the effects of climate change.

• The Green Economy Transition (GET) aims to

further scale up the Bank’s green business, up to 40% of its busines iness s volum lume e by 2020.

Mainstreaming green financing Results in 2006 – H1 2017

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FINANCED

1,300+

Green projects and credit lines

1,000+ directly financed projects 290 credit lines to local FIs

SIGNED

€23 billion

• f green financing

36% of total business

REDUCED

85 million

tonnes of CO2/year

200 million m3/y

since 2013

Green financing business model

• direct & indirect financing
• investment grant support
• blended concessional

finance

• develop sustainable

energy lending

• climate vulnerability

risk assessments

• address sustainability &

environmental market failures

• strengthen the institutional &

regulatory context

• transition gaps &

market scoping

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EBRD financing channels

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DIRECT FINANCING AND SUPPORT Large borrowers Company 1 Company 2 Energy Efficiency team

EBRD

FINANCING VIA PARTNER FINANCIAL INSTITUTIONS Local financial institutions Small borrowers Energy Efficiency team

External technical assistance team

Bank /Leasing co

EBRD

Financing Technical Assistance

EBRD Circular Economy Performance 2014 - 2016

Finance Annual review of EBRD investments including CE components. 153 transactions in 2016 Policies Contribution to the development of policies promoting CE in the EBRD countries of

• perations (e.g. Ecodesign directive in Ukraine)

Innovation Development of Innovation Vouchers Scheme in Ukraine and Serbia Partnerships Development of a Material marketplace in Turkey, in cooperation with BCSD Network Member of the FinanCE group, a spin-off of the Ellen MacArthur Foundation

What the EBRD is doing in the Circular Economy space

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ASSESSED EBRD PROJECTS TO DETERMINE:

• Use of circular measures
• Potential for use of circular measures

Review of Historic CE Performance (1/3)

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DEFINED CIRCULAR AS:

• Operational activities which take advantage
• f existing energetic or material flows for

additional utility or improve the material efficiency of products EXCLUDED:

• Renewable energy
• Water input reduction measures not

including water recycling

368 EBRD investments reviewed In 37 countries From 2014 to 2016

Review of Historic CE Performance (2/3)

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Use or potential use of circular measures Public or private Geography

CATEGORISE EACH PROJECT BASED ON:

1 2 4

Industry sector

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Review of Historic CE Performance (3/3)

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KEY OUTCOMES:

• About 42% of green investme

estments nts of the EBRD include a circular component in the analysed period, corresponding to 153 projects;

• The sectors where most of circular components have been implemented are

Agribus usiness ness and Manufac actu turin ring and Service ces;

• About 2/3 of the circular projects have been implemented in the privat

ate sector

• r;
• Turkey

y and Ukraine aine are the countries where most of the circular investments have taken place.

Case Studies

Circular Economy work with Automotive Sector Clients

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R&D/ Innovation in Circular Economy

Financing and support to company producing automotive circulation fluid systems, for R&D to reduce material consumption, make lighter product and re-use materials

CE with Brisa – Major Tyre Manufacturer

Financing and support to tyre specialist, with focus on material efficiency, product re-use and recycling and working with value chain

Sisecam glass recycling

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EBRD Finance Supported Turkey’s largest glass producer to procure machinery and equipment for glass recycling and high- quality cullet production.

• Sublease state-of-the-art glass

recycling to cullet producers to:

• Increase recycling rates
• Improve cullet quality

GHG Reduced € 44 million

>100,000

ton CO2 eq / yr

Sisecam glass recycling

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Voskhod Chromium - Kazakhstan

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EBRD Finance Improved the operational efficiency of a chromium mining and processing facility in

• Kazakhstan. Measures promoted

reductions in resource intensity and increases in resource reuse, including:

• Mining wastewater recycling
• Further processing of mining tailings to

increase chromium recovery GHG Reduced $ 130 million

10,000

ton CO2 eq / yr

30 October, 2017

GET Finance $ 5.5 million

Low-Carbon Roadmap for the Egyptian Cement Industry

17 30 October, 2017

Defining and implementing a low-carbon pathway for the sector including measures and investments that promote a circular economy. Working with industry representatives to implement the roadmap’s recommendations:

• significantly increase the use of

alternative fuels

• promote the systematic reuse of

industrial by-product

• institute adequate waste management

legislation

Other initiatives

• EBRD strategic initiative in Turkey to promote waste minimisation and valorisation
• Funded by the EBRD and Clean Technology Fund (CTF)
• Technical assistance from the EU Instrument for Pre-accession Assistance 2013 (EU IPA

2013) funds

The Near Zero Waste (NØW) Programme General features

Mainstreaming the concept of circular economy in Turkey through Materials Marketplace: Objective: facilitate cross-industry materials reuse among Turkish companies

• Commercially-based materials exchange platform
• Create a collaborative business network
• One company’s waste and by-products become another company’s raw material
• Cloud-based

http://turkey.materialsmarketplace.org/

The Near Zero Waste (NØW) Programme Turkish Materials Marketplace (1/4)

The Near Zero Waste (NØW) Programme Turkish Materials Marketplace (2/4)

30 October, 2017 21

M A R K E T L A N D F I L L

Output Output By-product By-product

The Near Zero Waste (NØW) Programme Turkish Materials Marketplace (3/4)

30 October, 2017 22

M A R K E T L A N D F I L L

Output Output

Materials

Marketplace

By-product By-product

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• Mature economy and business-

enabling environment

• Transition to a circular economy and

improving waste management are

• f strategic importance
• Accelerating harmonisation of

Turkish waste legislation with the EU Directives

• Demonstration effect on other

EBRD CoOs

• Project endorsed by the Ministry
• f Environment
• Launch study on end-of-waste

criteria to help complete harmonisation of local waste regulation with that of the EU

• Link to new investments– R&D

and innovation

• Bring in access to technical and

legal support to help taking advantage of opportunities

The Near Zero Waste (NØW) Programme Turkish Materials Marketplace (4/4)

Why initiate the Materials Marketplace in Turkey?

Steel Offal

A steel by-product of General Motor’s stamping operations. In the US, GM produces ~40,000 pieces per month in about 12 different shapes and sizes. Due to its consistent size, quality and predictable quantity, pieces have reuse potential and value beyond traditional scrap metal markets Benefit

$5

Million USD Supply

13

Thousand Tons BEFORE

Steel Offal

A steel by-product of General Motor’s stamping operations. In the US, GM produces ~40,000 pieces per month in about 12 different shapes and sizes. Due to its consistent size, quality and predictable quantity, pieces have reuse potential and value beyond traditional scrap metal markets AFTER Benefit

$5

Million USD Supply

13

Thousand Tons

• An Innovation Voucher - a voucher provided to SMEs to co-fund development, testing,

certification, deployment or other external services needed to improve competitiveness, market reach, or reduction in energy/GHG emissions of commercially available climate technologies that they are developing or utilizing

• Two schemes implemented, one in Ukraine and one is Serbia
• The ultimate objective is to promote the development of a R&D supply chain in the

countries, and the access to resource efficient technologies.

Innovation vouchers scheme Serbia and Ukraine

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THANK YOU

For more information:

http://www.ebrd.com/what-we-do/get.html http://turkey.materialsmarketplace.org/