Can the EBRD’s New 2021-25 Green Economy Transition Approach Enable a Green and Sustainable COVID-19 Recovery: A Transnational Law Outlook

Abstract

As one of the most proactive and prominent International Financial Institutions (IFI) involved in the battle against climate change, the European Bank for Reconstruction and Development (EBRD) has continued to engage and implement diverse strategies for the promotion of a green and sustainable economy. The Green Economic Transition (GET) approach for 2021-25 also known as ‘GET 2.1’ is a new stratagem of the EBRD which aims to enable a green COVID 19 recovery in countries where the bank operates by facilitating novel policies and procedures for green investments. Generally, the social and economic impacts of the pandemic has increased the need for more innovations in the goal towards the achievement of the net-zero carbon emissions target by 2050. Hence, in the quest for a green and sustainable COVID 19 recovery, the EBRD has devised novel techniques within its GET approach to help economies where it operates attain sound environmental standards in their fight against climate change and the promotion of sustainable development.

The aim of this paper is to analyse EBRD’s new GET approach and explore the diverse ways in which it can be utilised in the pathways towards the attainment of a green and sustainable COVID 19 recovery. In so doing, this paper will argue that IFIs and development banks have an undeniable role to play in ensuring the achievement of a green COVID 19 recovery. Furthermore, this paper will argue that EBRD needs to implement more ambitious strategies in its response to the pandemic in order to achieve its 2050 GET target. Essentially, this paper would suggest that transnational law mechanisms would be very useful tools that can be further implemented within EBRD strategies in order enable a more inclusive COVID 19 recovery.

By drawing particular focus on both the policy and practice strategies of EBRD new 2021-2025 Green Economy Transition approach, Section Two of this paper will analyse the role of EBRD in promoting SDGs. Building on such analysis, Section Three will introduce the role of transnational law and in so doing, this paper will further explore the ways in which transnational law mechanisms can be implemented within EBRD strategies. Section Four will examine the events provoked by COVID 19, and thus, suggest novel ways in which the EBRD GET approach can enable a green and sustainable COVID 19 recovery. Finally, this paper will conclude by presenting policy proposals as well as useful practical strategies for the implementation of transnational law mechanisms within EBRD new GET approach.

Keywords: EBRD, Green Economy Approach, Transnational Law, International Economic Law, Sustainable Development Goals, SDGs, Paris Agreement, COVID-19, International Financial Institutions, Net-Zero Carbon Emissions

JEL Classification: E5, F3, G2