Future arrangements for the PPC

The PPC has been working within the “Environment for Europe” process since 1993 to promote environmental investments and improve coordination between IFIs and donors in the region. It has been funded entirely by donors, with a Secretariat based at the EBRD.

Since 2003 the PPC has phased out its work in the EU accession countries and focused its attention on Eastern Europe, the Caucasus, Central Asia and South-eastern Europe. During this period there has been a progressive decline in bilateral donor support for environmental programmes, and the EC has now assumed the role of the leading environmental donor in the region. Furthermore, donors and IFIs have developed a range of new partnerships, such as DABLAS and the EBRD’s Early Transition Countries (ETC) Initiative, to coordinate their assistance.

A review of the PPC carried out in 2006, in preparation for the Sixth Ministerial Conference “Environment for Europe” in Belgrade (October 2007), found that project preparation assistance needs to be delivered in a way that recognises the changing context in the region. Stakeholders indicated that they wanted the PPC to provide a wider range of support for project preparation. The review concluded that the EBRD was the only IFI with a strong demand for the PPC’s services, and that the PPC should build on this close relationship. It was thus proposed that the most viable option for the PPC’s future would be to mainstream it into the EBRD’s operations.

At the Belgrade conference, Ministers recognised the important contribution that the PPC has made in the area of environmental financing, and endorsed the decision to internalise it within the EBRD. Mainstreaming the PPC’s functions inside the EBRD will result in more proactive support for innovative environmental initiatives. It will also enable the PPC’s work to continue on a more sustainable financial and institutional basis than would be possible with continued ad hoc donor support.

From 2008 the internalised PPC will form the core of a dedicated sustainability initiatives team inside the EBRD’s Environment and Sustainability Department. The team will focus on identifying, developing and implementing initiatives that promote environmental and social sustainability across the EBRD’s operations. It plans to develop a range of new activities in areas such as health and safety, water and sanitation, biodiversity management and climate change adaptation in the EBRD’s countries of operations. Funding for these activities is likely to come from a variety of sources, including the EBRD itself and additional donor contributions.

The new team will serve as the EBRD’s ongoing contribution to the EfE process. A sustainability forum will be held annually to provide a coordinating focal point for partnerships with donors, other IFIs, the private sector, NGOs and UN agencies in the field of environment and sustainability. The first forum is planned for 17 May 2008 in Kiev, immediately prior to the EBRD’s Annual Meeting.

Enquiries concerning the work of the PPC up to 2007 and the activities of its successor organisation inside the EBRD should be directed to Craig Davies.