ESG — Sustainable finance

Sustainable finance

The EDB applies a comprehensive approach to assessing the environmental and social risks and impacts of each project, based on best international practices and taking into account both national and sectoral specifics. The EDB also aims to expand its portfolio of green projects that have a positive impact on the environment and climate, thereby contributing to the achievement of climate goals by its member states, enhancing the region's environmental sustainability, and developing the green finance market.

Principles of sustainable finance

Financing projects that contribute to sustainable development and improve the quality of life

Excluding financing for activities prohibited by law or international conventions.

Assessing impacts and risks and determining measures to prevent and minimize them

Taking into account stakeholders' opinions and ensuring transparency

Applying best international practices

Environmental and Social Assessment of Projects

The Bank assesses environmental and social risks at all stages of the project cycle, strives to prevent and minimize possible negative impacts, enhance positive effects and promote best practices in sustainable development.

How does it work?

  1. 01 Preliminary assessment Checking a specific activity against the EDB's Environmental and Social Exclusion List. Projects related to prohibited activities are not considered for financing.
  2. 02 Categorisation Categorisation Assigning a category to a project depending on the scale and nature of potential negative environmental or social impact. ASignificant impact BLimited impact CMinimal impact FIFinancial institutions
  3. 03 Assessment of risks and compliance with safeguards Assessing environmental and social risks, the adequacy of measures to manage them, and the project's compliance with the Bank's Environmental and Social Safeguards.
  4. 04 Evaluating the climate and green profiles Collecting data on the project's positive environmental and social impacts. Assessing compliance with the Paris Agreement and the criteria for green and climate projects.
  5. 05 Conclusion Preparing a report with the assessment results and a list of corrective measures (if necessary).
  6. 06 Monitoring Carrying out annual monitoring of the effects and activities implementation upon the project launch.

Environmental and Social Safeguards

1

Management of Environmental and social risks

Development and application of an effective risk management system and interaction with stakeholders

2

Responsible Human Resource Management and Safe Working Conditions

Labour protection, respect for labour rights, prevention of forced and child labour

3

Resource Efficiency and Pollution Prevention

Development and implementation of effective measures to prevent pollution and GHG emissions, as well as to ensure the rational use of resources

4

Protection of Community Health and Safety

Prevention and minimization of public health risks, and emergency preparedness

5

Protection of Land Ownership Rights

Prevention of involuntary resettlement and economic displacement

6

Biodiversity Conservation and Sustainable Management of Natural Resources

Mitigation and minimization of impacts on biodiversity and ecosystem services, prevention of alien species introduction

7

Protection of Indigenous Peoples' Rights

Consideration for the views of indigenous peoples and prevention of negative impacts on their rights and culture

8

Preservation of Cultural Heritage

Identification and protection of cultural heritage sites from negative impacts

Projects must also comply with national laws and applicable international conventions.

Feedback form

The Bank strives to ensure transparency and consider stakeholder views on the environmental and social aspects of financed projects.

Stakeholders may submit:

  • comments on the environmental and social aspects of projects;
  • information on potential environmental and social risks;
  • inquiries related to the potential impact of projects on environment or population;
  • reports on potential non-compliance with the Bank's environmental and social requirements.

The Bank reviews incoming requests in accordance with established procedure and may request additional information if necessary.

  • Comment
  • Question
  • Complaint
  • Risk / incident report
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Green finance

The EDB sees opportunities for green transformation in all key investment areas, including energy, transport, communications, and agriculture, and is systematically expanding its portfolio of green projects in line with the priorities of its member states.

The Bank labels projects as green if they comply with national (if any) or international taxonomy (for example, Climate Bonds Taxonomy). The Bank also uses the Common Principles for Climate Mitigation Finance Tracking to track climate finance projects in its portfolio.

The EDB aims to increase the share of green investments and expand the volume of green financing.

The current investment portfolio of green projects as of the end of 2025 amounts to more than

$ 1085 mln

The cumulative portfolio of green projects as of the end of 2025 reached

$ 2001 mln

Timely unlocking of climate finance potential in the region is one of the Bank's key objectives.

  • Energy efficiency
  • Solar energy
  • Wind energy
  • Hydropower
  • Eco-friendly transport
  • Water use
96% Climate finance projects
13% 10% 4% 5% 25% 43%
16 green projects in the current investment portfolio

As of 31.12.2025

Green projects in the cumulative investment portfolio, US $ million, 2018-2025

2000 1500 1000 500 0
202 16 178 157 104
2018
270 17 257 164 116
2019
263 160 228 154 97
2020
254 257 230 154 96
2021
337 270 231 158 101
2022
343 195 50 266 275 83
2023
323 506 44 362 319 123
2024
531 596 57 371 319 124
2025
  • Solar energy
  • Energy efficiency
  • Eco-friendly transport
  • Wind energy
  • Hydropower
  • Water use
Cumulative portfolio of green projects (x2 compared to 2018) ~US $2 bln

Projects

Technical Support for the Construction of the Kyzylasker Solar Power Plant

62ths project amount
62ths Bank's contribution
Kazakhstan
2025

Development of Fortified Wheat Flour Production and Consumption

543ths project amount
327ths Bank's contribution
Tajikistan
2025

Development of a Business Ecosystem for Sustainable Irrigation in Kazakhstan

2,3mn project amount
2,3mn Bank's contribution
Kazakhstan
2024

Modernisation of the Infrastructure of OJSC Armenia Stock Exchange

300ths project amount
249,5ths Bank's contribution
Armenia
2020

Organising a Business Project Competition in the Circular Economy

33,6ths project amount
33,6ths Bank's contribution
Belarus
2024

Modernisation of the Infrastructure of the Kyrgyz Stock Exchange (KSE)

498,6ths project amount
386,6ths Bank's contribution
Kyrgyzstan
2024

Development of Sustainable Waste Management and Secondary Material Resources in the Kyrgyz Republic (Part 1: PPP Project Feasibility Study)

200ths project amount
200ths Bank's contribution
Kyrgyzstan
2024

Development of Sustainable Waste Management and Secondary Material Resources in the Kyrgyz Republic (Part 2: Secondary Material Resources Market Development Programme)

120ths project amount
100ths Bank's contribution
Kyrgyzstan
2024