BAKU, Azerbaijan, May 7. The European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD) have signed a new Mutual Reliance Agreement to enhance cooperation on environmental and social matters, aiming to accelerate the financing and implementation of sustainable projects across shared countries of operation, Trend reports.
The agreement, concluded on the sidelines of the World Bank and IMF Spring Meetings in Washington this April, marks a new chapter in the longstanding partnership between the two institutions. By aligning their environmental and social standards, the EIB and EBRD intend to reduce bureaucratic hurdles and ease the burden on project developers.
“This is a step change in how we work together,” said representatives from both banks, describing the move as a model for greater collaboration among multilateral development banks (MDBs).
Under the agreement, the EIB and EBRD will be able to delegate environmental and social assessments, monitoring, and compliance tasks to each other throughout the entire project cycle. Clients will benefit from simplified reporting and a single point of contact for these aspects, while projects will still adhere to the highest sustainability standards.
The deal builds on existing procurement-focused mutual reliance agreements that have already enabled the two institutions and other MDBs to co-finance 77 projects worth approximately 30 billion euros between 2015 and 2024. It also aligns with the G20’s call for more effective MDB cooperation as part of its Roadmap for Better, Bigger, and More Effective development banks.