When the European Bank for Reconstruction and Development (EBRD) issued an A$280m ($203m) green transition bond in January 2021, the private placement was the latest in a series of fundraising for cutting the carbon emissions of ‘dirty’ industrial sectors where decarbonisation is most challenging, such as steel and cement, chemicals and mining.
Central and eastern Europe, the EBRD’s region, has some of the highest carbon emission rates in the world, due partly to its carbon-heavy industries. Such a dependence on these industries means a transition to a zero-carbon economy will take time.