Environmental and Social Exclusion List of the Bank
In the activities and when participating in the implementation of clients' projects, the bank adheres to following the environmental and social exclusion list (unacceptable loans regulated by the Credit Policy of the Bank and the list of exclusion investment activities of the partners of the Bank).
According to the exclusion list (Environmental and Social Exclusion List), the Bank will not finance projects related to the following activities:
- Production or activities involving harmful or exploitative forms of forced labor/harmful [1] or child labor [2];
- Production or trade in any product or activity deemed illegal under host country laws or regulations or international conventions and agreements, or subject to international bans, such as:
a. pharmaceuticals [3], pesticides/herbicides [4],
b. production or trade in ozone-depleting substances to be phased out [5],
c. polychlorinated biphenyls [6] and other hazardous chemicals [7]*,
d. production or trade in wildlife regulated under the CITES [8];
e. transboundary movements of wastes prohibited by international law[9]*.
- Production and/or acquisition, as well as transportation and storage of weapons, munitions, and explosives;
- Projects that cause forced eviction/relocation;
- Production or trade in alcoholic beverages (excluding beer and wine) [10];
- Production or trade in tobacco;
- Gambling, casinos, and equivalent enterprises;
- Production or trade in radioactive materials [11], including nuclear reactors and their components;
- Production, use, or trade-in unbound asbestos fibers or asbestos-containing products [12];
- Commercial logging operations or procurement of logging equipment for use in the primary tropical moist forests or relict forests;
- Marine and coastal fishing practices, such as large-scale pelagic drift-net fishing and small-net fishing, which cause damage to vulnerable and protected species in large numbers, as well as damage to marine biodiversity and habitats;
- Drift net fishing in the marine environment using nets in excess of 2.5 km. in length;
- Coal-related projects, including coal mining, coal transportation, or coal-fired power plants, as well as infrastructure services designed solely to support any of these activities;[13]
- Oil exploration and production*;
- Events involving forced feeding of ducks and geese*;
- Keeping animals primarily for the production of fur or any activity related to the production of fur*;
- Export of mercury and its compounds, as well as production, export, and import of a wide range of mercury-added products*;
- Shipment of oil or other hazardous substances by vessels that do not meet international requirements*;
- Trade in goods without obtaining the required export or import licenses or other transportation permits issued by the respective countries of export, import, and, if required, transit*[14].
[1] Forced labor means all work or service, not voluntarily performed, that is extracted from an individual under threat of force or penalty.
[2] Child labor means the employment of children whose age is below the minimum age for employment established by the law of the host country, or the employment of children in violation of the convention of International Labor Organization «Minimum Age Convention» No. 138 (www.ilo.org).
[3] The list of pharmaceutical products subject to phase-out or ban is available at: http://www.who.int.
[4] The list of pesticides and herbicides that are subject to phase-out or ban is available at: http://www.pic.int.
[5] A list of chemical compounds that react with stratospheric ozone and destroy it, creating, as a result, well-known ozone holes is given in the Montreal Protocol, as well as target dates for reducing emissions and phasing out their production are set. For more information, go to: http://www.unep.org/ozone/montreal.shtml.
[6] Polychlorinated biphenyls are a group of highly toxic chemicals. From 1950 to 1985, polychlorinated biphenyls were often used in oil-insulated electric transformers, electric capacitors, and switching equipment.
[7] The list of hazardous chemicals is available at: http://www.pic.int.
[8] CITES: Convention on International Trade in Endangered Species of Wild Fauna and Flora. The list of species included in CITES can be found at: http://www.cites.org.
[9] Background documents: Regulation (EC) No 1013/2006 of 14 June 2006 on the transport of waste; Decision C (2001)107/Final of the Council of ESRMU on the revision of Decision C (92)39/Final on the control of transboundary movements of waste intended for disposal. Additionally, the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal (http://www.basel.int).
[10] This does not apply to project organizers who do not take a significant part in such events. The absence of significant participation means that the relevant activity is auxiliary to the main operations of the project organizer.
[11] This does not apply to the purchase of medical equipment, quality control (measurement) equipment, or any equipment for which the IFC and other IFIs believe that the radioactive source is insignificant and adequately protected.
[12] This does not apply to the purchase and use of asbestos-cement sheet material with an asbestos content of less than 20%.
[13] "Coal-related project" means (a) the development or expansion of coal-fired power plants, coal mines, coal transportation assets, or infrastructure facilities designed to support coal mines and coal transportation, or (b) any Person who, in the previous financial year,
* (i) generates more than 30 percent of its energy output from coal-fired power plants,
* (ii) generated more than 30 percent of its annual revenue from coal (including mining, and other coal-related businesses and services*),
* (iii) a coal-fired power plant with a capacity of 10,000 MW or more is installed,
* (iii) has produced 20 million tons or more of coal, or
* (iiii) participates in the development or expansion of coal-fired power plants, coal mines, coal transportation assets, or infrastructure facilities designed to support coal mines and coal transportation
* The share of coal in revenue estimates includes, without limitation, the following activities: exploration and drilling, mining, transportation and logistics, refining, engineering, procurement and construction, operation and maintenance, trading, equipment manufacturing, coal to gas and coal to liquid, energy, and heat generation.
" Impact of the coal-related subproject" means the aggregate of all on-balance sheet assets (including equity) and off-balance sheet liabilities and unforeseen expenses of a company with an initial maturity of more than 36 months (and any extensions or refinancing), any person (together with its subsidiaries) undertaking or forming part of a coal-related subproject, but excluding from such estimated assets, liabilities and unforeseen expenses for which the use of proceeds specifically intended for a development or expansion project does not fall within paragraph (a) of the definition of a coal-related subproject;]
[14] Activities marked " * " are applicable only in active operations carried out at the expense of the EBRD.
