The European Bank for Reconstruction and Development (EBRD) and the European Union will increase support for sustainable infrastructure, green investment and digitalisation projects across EU economies where the lender operates, the two institutions announced on June 5.

Speaking at the EBRD's Annual Meeting and Business Forum in Riga, the partners said they would expand InvestEU guarantees by up to €478.4mn, alongside €11.4mn in funding for advisory activities.

The additional guarantees will enable the EBRD to finance higher-risk projects that may otherwise struggle to secure commercial funding, while advisory support will help prepare and implement eligible investments through technical and legal assistance.

The EBRD is among the largest partners in the EU's InvestEU programme and has already deployed more than €470mn in guarantees, supporting projects worth over €5bn across sectors including energy, transport, municipal infrastructure, manufacturing, agribusiness and natural resources.

"We are delighted to further expand our cooperation with the European Union – a key partner and donor – in our EU countries of operation, especially as we meet in Riga for our Annual Meeting," EBRD president Odile Renaud-Basso said.

"This is yet another very concrete example of our fruitful partnership, which mobilises investment in innovative ways and helps businesses to access vital finance," she added.

European Commissioner for Economy and Productivity, and Implementation and Simplification Valdis Dombrovskis said the agreement demonstrated how EU budget resources could be used to attract investment into strategic sectors.

"By reinforcing EBRD with up to €478.4mn in additional guarantees and €11.4mn in advisory support, we will help finance higher-risk projects in sustainable infrastructure, the green economy, digitalisation, innovation, research and support for SMEs," Dombrovskis said.

He added that recent reforms to the InvestEU framework would make the programme "more efficient, flexible, and easier to use" while supporting Europe's competitiveness, resilience and clean transition.