Financing climate policies now goes hand in hand with support for industry

Financing climate policies is categorically not in conflict with industrialization. This was stated during the Green Transition Forum in Baku by Delyana Ivanova, Chairwoman of the Supervisory Board of the Bulgarian Development Bank. She is also an advisor to the Minister of Innovation and Growth. Ivanova participated in the panel on mobilizing financial capital in support of climate protection and growth activities, which was held at the Bulgarian pavilion at COP29 in Baku.

According to the financier, the main policies for supporting industries and climate protection already complement each other. Thus, they can actually lead to prosperous economic growth and, at the same time, to environmental sustainability of investments. "This was also recorded in Mario Draghi's report, as the path of industrialization also includes the goals of continuing adaptation to climate change.

This is where the role of promotional banks comes in, which is crucial in order to be able to mix capital: to obtain a mix of one-third public resources with private capital with the availability of government instruments. These are practically one of the perfect instruments for this role," Ivanova explained to experts in Baku. According to her, promotional banks, because they are public and do not maximize their profits, can invest not only in enterprises for profit, but also take care of the social and environmental aspects of their financial operations.

"In reality, the BDB transfers the policy from the European to the national level. Using the support of the government, as well as international specialists and financial institutions, we actually direct resources for financing climate policies to our companies. Of course, we have knowledge of debt and know how to do it. We participate and implement part of the InvestEU programs, so we can guarantee the risky part of the investments," the banker explained.

The Bulgarian Development Bank also has a consulting function and manages to support the training of enterprises in Bulgaria on how to make their investments to be more sustainable. In this way, they will also have an impact on climate change and adaptation to it, Ivanova was categorical.

Recently, the Chairman of the BDB Supervisory Board presented the bank's new strategy, which is fully in line with the EU's green policies. The BDB will become a powerful tool for supporting small and medium-sized businesses, supporting national policies and overcoming regional disparities, the bank is categorical.

The COP29 discussion was moderated by Lilyana Pavlova, Vice-President of the EIB (2019-2023), and also included Iliana Tsanova, Deputy Director-General of DG Budget at the EC, Krasimir Yakimov, Deputy Minister of Innovation and Growth, and Philipp Offenberg, Director for Europe at Breakthrough Energy.