Green transition in Bulgaria

The Bulgarian Development Bank plays a central role in advancing green and socially oriented investment programmes in Bulgaria. Over the past two decades, the CEB and BDB have built a strong partnership, under which the Bank has approved six loan operations in support of BDB’s development mandate. The most recent, a €175 million loan approved in 2022, supports BDB’s financing of micro, small and medium-sized enterprises, while also promoting environmentally sustainable investments.

This cooperation has since been expanded through technical assistance financed by the Green Social Investment Fund (GSIF), a CEB trust fund. In 2025, BDB launched an initiative to better align its investments with the country’s sustainable socio-economic development objectives. As part of this effort, it strengthened its environmental, social and governance (ESG) and climate risk management framework. The first phase of the initiative, supported by a GSIF grant, has now been completed successfully.

Building on these results, the CEB approved in 2026 a second GSIF grant of nearly €100 000 to finance the next phase of the initiative. This phase will focus on operationalising the new framework by reinforcing ESG governance, integrating ESG risk considerations into lending and risk management processes, and improving reporting and disclosure in line with applicable EU standards.

iStock-1130445342 Green transition in Bulgaria
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