site.btaUnlocking Capital for Climate Action: Bulgarian Pavilion Launches COP29 Discussions in Baku

At the first event of the Bulgarian pavilion at COP29 in Baku on Tuesday, experts discussed the topic of "Mobilizing Capital for Climate Action and Growth." Led by Lilyana Pavlova, former Vice President of the European Investment Bank (EIB), the forum focused on how multilateral financial institutions can motivate private capital to invest in climate projects and green technology.

EU Budget Priorities for a Green Transition

Iliyana Tsanova, Deputy Director-General of the European Commission’s Directorate-General for Budget, outlined the European Union's main priorities in facing global challenges. She emphasized that Europe must speed up innovation, address the energy crisis, and focus on decarbonization and sustainability to remain competitive globally. Tsanova added that two-thirds of the funding required for the green transition should come from private sources. She noted that the budget must become more targeted, efficient, and adaptable, especially in response to crises.

EIB and EBRD: Catalysts for Private Investment

EIB Vice President Ambroise Fayolle and EBRD First Vice President Jürgen Rigterink shared their perspectives on the role of development banks in attracting private capital for green projects. Fayolle cited Europe’s success in reducing carbon emissions by one-third since 1990 while achieving two-thirds economic growth, demonstrating the potential to align climate goals with growth and competitiveness. However, he cautioned that climate change is progressing faster than anticipated, underscoring the urgent need for accelerated action.

Expanding Wind Energy and Green Financing

Fayolle described the EIB's evolving approach to renewable energy financing, moving from onshore to offshore wind, and now supporting floating wind farms. This transition, he explained, gradually opens the door for private investment in this area. He added that the EIB has surpassed its original 50% target for green lending, now reaching 60%. Rigterink emphasized the private sector's need for scalability and an acceptable return on risks, and noted that in some markets, high risks discourage private investment in climate initiatives.

Bulgarian Development Bank's Role in Climate Initiatives

Chair of the Supervisory Board of the Bulgarian Development Bank (BDB) Delyana Ivanova discussed BDB’s role in bridging European and Bulgarian climate policies. She stated that BDB, with government backing, allocates resources to climate funding, assumes part of the risks, and guides companies on how to invest in sustainability. Ivanova highlighted that BDB plays a key role in transposing European climate objectives to the national level, supporting Bulgarian companies in sustainable practices.

Bulgaria's participation in COP29, the UN Climate Change Conference in Baku, marks the second consecutive year the country has hosted its own pavilion. Led by President Rumen Radev, the Bulgarian delegation includes key government officials and representatives from finance, academia, and industry, showing Bulgaria’s commitment to climate diplomacy and regional leadership in climate action. The discussions at the Bulgarian pavilion focus on mobilizing capital for climate projects, enhancing net-zero competitiveness, and fostering green initiatives across Southeastern Europe. Topics span from the role of multilateral finance to women’s impact on climate action, with a significant focus on leveraging science, innovation, and cross-border cooperation to meet the EU’s climate goals.