ENERGY,ENVIRONMENT AND INTERNATIONAL FINANCIAL INSTITUTIONS: THE EBRD'S ACTIVITIES IN THE WESTERN BALKANS

This article examines the relationship between the EBRD's project portfolio in the Western Balkan energy sector, and the region's main energy and environment problems. It argues in favour of geographically centred appraisals of the environmental sustainability of multilateral energy investment. Empirical analyses have been placed within the context of this bank's broader policy mandate to support the reconstruction and development of, among other aspects, energy operations in the post‐socialist states of Eastern Europe and Central Asia, while promoting environmental sustainability. The article categorizes the Western Balkans' energy and environment problems into two main groups: the failure to shift away from carbon‐emitting sources of energy, and the inability to introduce efficient technologies in the generation, transmission, distribution and consumption of energy. It investigates the level to which these issues have been represented in the Bank's energy investment activities in the region. The EBRD's ability to fund energy and environment projects has been affected by, among other factors, the decision‐making process within the relevant governments and the Bank itself. These processes are related to the structural legacies of central planning and the organizational cultures embedded within the EBRD at its inception.