The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) contribute to the development of a circular economy in Azerbaijan. The bank provides a loan of up to US$4,2 million to the lead-acid battery recycling company Az-Lead. The company produces secondary (unrefined) lead ingots and refined lead ingots by recycling end-of-life lead-acid batteries that would otherwise go to landfill. The transaction will be backed by a guarantee from the European Fund for Sustainable Development (EFSD).
The investment is set to increase the company's recycling and treatment capacity, improve lead recovery rates, and increase Az-Lead's monthly production from 500 to 800 tonnes and eventually over 1.000. This will support the company in meeting the growing demand for recycled lead in the automotive and renewable energy sectors.
In addition to financing, the Bank will also support Az-Lead in due diligence and developing an environmental, social and governance pathway for small and medium businesses in line with international best practices.
This investment project contributes to the implementation of the EU's Economic and Investment Plan (EIP) in the Eastern Partnership region. One of EIP's top priorities for Azerbaijan is to promote the country's economic diversification and greening of the economy while supporting local businesses.
EFSD is an EU risk mitigation tool that can be used for projects in EU neighboring regions in the municipal infrastructure, transport and logistics, industry and construction sectors. The EFSD guarantee has two strategic priorities. It aims to support debtors who have been adversely affected by the Covid-19 outbreak. It also aims to accelerate financing flows for projects that contribute to the transition to green economies.
Matteo Patrone, EBRD Managing Director for Eastern Europe and the Caucasus, commented: “We are delighted to support our first circular economy project in Azerbaijan. Az-Lead recycles batteries that would otherwise end up in landfills. With our support, the company aims to increase its recycling and treatment capacity, which will increase Azerbaijan's exports while protecting the environment. We are proud of the nature of this project and how it fully aligns with the EU Circular Economy Action Plan.”
Lawrence Meredith, EU's Director of Eastern Neighborhoods and Institution Building at the European Commission, said: “We fully support this EBRD investment, which is in line with our Economic and Investment Plan for Azerbaijan and the Eastern Partnership countries. Thanks to the EU guarantee support, we contribute to the green transition in the country and create new employment opportunities.”
Az-Lead was established in 2014 and is located in the Sumgait industrial zone. The company is the largest secondary producer of unrefined lead and the only producer of refined lead ingots. The company exports all of its lead-based products internationally.
The EBRD is one of the leading institutional investors in Azerbaijan, where it has invested US$187 billion in 3,6 projects to date in the finance, corporate, infrastructure and energy sectors, most of which are privately owned. The bank's strategy in the country focuses on helping Azerbaijan diversify its economy and develop the non-oil private sector.
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