EBRD signals readiness to support green corridor linking Central Asia and Europe
The European Bank for Reconstruction and Development (EBRD) is closely monitoring key regional developments in the Caucasus, particularly the recent agreement between Azerbaijan, Kazakhstan, and Uzbekistan to establish a green corridor, said Alkis Vryenios Drakinos, Regional Head of the Caucasus for EBRD, in an interview with Trend.
"We are involved across the entire Caucasus and are closely monitoring new regional developments," Drakinos said. "Recently, the leadership of Azerbaijan, Kazakhstan, and Uzbekistan signed an agreement for a green corridor. It’s still early to discuss the specifics of the project since we need feasibility studies and other assessments. However, the political will for collaboration among these three countries, combined with the potential to channel the renewable energy of Central Asia and the Caucasus not only for domestic use but also for the European market, is very promising".
He added that if the project proves viable and bankable, EBRD is ready to support it. "All three countries are operational members of the bank, so we are well-positioned to assist. I am looking forward to further updates on this," Drakinos noted.
In addition to the green corridor, the EBRD is also exploring the Middle Corridor, a transport sector project that links Central Asia with Europe. While not directly related to climate change, Drakinos explained that the bank’s financing approach ensures sustainability.
"The Middle Corridor concept is very important with numerous potential projects under it," he said. "We have been financing ASCO, which is currently purchasing vessels and cargo ships to support trade along the Middle Corridor. This is helping meet the demand for transporting goods between Central Asia, Europe, and beyond, both ways".
Drakinos further clarified that any transport-related investments made by the EBRD, regardless of sector, always include a green component. "We do not finance projects that are not compatible with the Paris Agreement’s conditionalities. Therefore, every project we support is aligned with the Agreement, and we incorporate relevant conditions to ensure compliance".
The EBRD is also paying close attention to the Black Sea cable project, which is part of the region’s green energy corridor. "This is a major project that is starting to become more understandable as the feasibility study is almost ready," Drakinos said. "Once it is shared with us, we will be reviewing it. We know that this energy corridor project can lay the infrastructure to transfer renewable energy from the Caucasus to Europe".
Recall that the European Bank for Reconstruction and Development (EBRD) is contributing to greater energy security in Kazakhstan and helping to improve the reliability of its power supply system by arranging €267 million in financing for the Kazakhstan Electricity Grid Operating Company (KEGOC).
