Title page
Contents
Acknowledgements 5
Executive summary 6
Background 10
Rationale 10
Participating institutions 11
Structure of the report 11
Chapter 1. Data availability and quality 12
Summary 12
Key messages 12
Primary sources 13
Questionnaires 14
Secondary sources 16
Conclusions and recommendations 17
Chapter 2. Regulatory and supervisory issues 18
Summary 18
Key messages 19
Regulation and guidance 19
Oversight 19
Banks' activities 20
Stress testing 21
Green-sensitive capital requirements 22
Climate risk prudential disclosures 22
Prudential transition plans 23
Special challenges for non-EU European countries 24
Conclusions and recommendations 25
Chapter 3. Gearing up to decarbonise the industrial sector in Central, Eastern and South-Eastern Europe 28
Summary 28
Decarbonisation pathways: The electricity sector 28
Large investment is needed in the electricity sector 28
Ensuring electricity security during the rapid energy transition 30
Will market prices incentivise sufficient investment? 31
Regional integration 32
Opportunities and risks in financing the electricity sector in Central, Eastern and South-Eastern Europe 33
Conclusions 34
Decarbonisation pathways: buildings and energy efficiency 34
Investment barriers 35
Regulation 36
Market size and structure 38
Public sector promoter constraints 39
Access to finance 39
Conclusions 40
Climate transition plans and their role in supporting the green transition 40
Climate transition plans: Definition and background 40
Guidance on the preparation of transition plans 41
Transition plan elements 42
Conclusions 43
The European Sustainability Reporting Standards 43
Key features of the European legal regime: The Corporate Sustainability Reporting Directive 43
Draft European Sustainability Reporting Standards issued by EFRAG 44
Workstream on small and medium businesses - simplified standards 45
Conclusions 45
Chapter 4. Conclusions and lessons for policy 46
Annex 1. List of presentations and interventions across the workstreams 48
Workstream 1 48
Workstream 2 49
Workstream 3 50
Figure 1. CO₂ emissions by source and key milestones in the electricity sector in the NZE Scenario, 2020 to 2050 29
Figure 2. Increasing share of renewables (wind and solar) in electricity generation in the Central and South-Eastern Europe energy connectivity (CESEC) region by 2030 30
Figure 3. Liquefied natural gas (LNG) import capacity in Central and Eastern Europe 2022-2026 31
Figure 4. Price volatility in the Greek power market during October 2022 32