Europe (Washington Insider Magazine) – The European Union (EU) and the European Bank for Reconstruction and Development (EBRD) have launched a new facility under the InvestEU program to provide equity investments for exploring critical and strategic raw materials. This initiative is set to mobilize approximately €100 million, focusing on resources vital for the EU’s digital and green transitions.
€25 million from the EU’s Horizon Europe Program and an extra €25 million from the EBRD will finance the new facility. By leveraging an additional €50 million, the facility expects to fund initial expenditures in raw material exploration. This approach is consistent with the EU’s Critical Raw Materials Act and the REPowerEU Plan, which seek to reduce supply chain disruptions and ensure long-term supplies.
Targeting Diverse Regions and Sectors
According to Miragenews, the facility will use the EBRD’s expertise to support mining projects across EU Member States and EBRD countries outside the EU. This includes nations like Bulgaria, Croatia, and Ukraine, among others. The focus will be on small to medium-sized enterprises engaged in raw material exploration, which typically need more revenue generation.
The facility will prioritize responsible exploration activities, adhering to stringent climate, governance, environmental, and social standards. All projects will undergo rigorous screening in alignment with the Paris Agreement and the EBRD’s Environmental and Social Policy.
Supporting the Green Energy Transition
The initiative aligns with the EBRD’s Mining Sector Strategy, emphasizing the exploration and production of materials crucial for green energy and digitalization. The new facility is part of the EBRD’s broader Junior Mining Framework, a €150 million program focused on equity and quasi-equity investments in early-stage mining companies.
The EU’s access to vital resources for technology in fields like defense and renewable energy is guaranteed under the Critical Raw Materials Act. The Fund, Advisory Hub, and Portal are the three parts of the InvestEU initiative that work together to simplify funding and raise significant private and public investments.
The EBRD, a key partner in this initiative, focuses on fostering market-oriented economies and green transitions across its 36 operational countries.
