The European Bank for Reconstruction and Development is increasing its investments in the Baltic region by adding a waste treatment plant to its portfolio, the bank announced Monday.
The bank revealed plans to acquire a minority equity stake in Eco Baltia JSC, the largest waste management operator in the Baltic countries of Latvia, Estonia and Lithuania, for €10 million ($11.4 million) to be used towards financing the construction of a mechanical and biological treatment plant for household waste.
"In Latvia, nearly 90 percent of municipal waste is being landfilled and the new plant will play an important role in strengthening an approach to waste management in line with recent European legislation," the bank said.
The new legislation, agreed by the European Parliament on 28 April, limits the way member states can meet the target of 10 percent for renewables in transport fuels by 2020.
Under the decision, there will be a cap of 7 percent on the contribution of biofuels produced from 'food' crops, and a greater emphasis on the production of advanced biofuels from waste feedstocks.
“Companies are increasingly realizing the vast potential of recycling, and for this they need waste management operators like Eco Baltia,” Matt Hyyrynen, the bank's head of office for the Baltics, said.
"The plant will be the first of its kind in the region, focusing on extraction of recyclable materials from household waste," the bank said.
Since Latvia's independence in 1991, the bank has invested more than €620 million in some 75 projects throughout all sectors of the economy in the country.
By Zeynep Beyza Karabay