EBRD’s Record €654m in the Baltics in 2025: Why This Is More Than a Big Number

Source: EBRD press materials (dated 3 February 2026)
Topic: EBRD investment results in Estonia, Latvia, Lithuania for 2025

The European Bank for Reconstruction and Development (EBRD) invested a record €654 million in the Baltic states in 2025, beating the previous high of €540 million in 2024. This isn’t just a new peak in annual financing. It’s evidence that the Baltics are shifting from “green pilot projects” toward a scaled, system-level rebuild of energy security—while simultaneously strengthening the region’s capital markets to fund the next stage of growth.  

1) What happened: the country breakdown—and what it signals

Infographic 1. EBRD investments in the Baltic states: €540m (2024) → €654m (2025) (+€114m, ~+21.1%). Source: EBRD. 

EBRD investments in 2025 (Baltics):

• Lithuania: €339m across 17 projects (all-time high)
• Latvia: €160m across 13 projects (all-time high)
• Estonia: €155m across 14 projects (continued strong performance)

Total: €339m + €160m + €155m = €654m

Approximate shares of the total:

• Lithuania: ~51.8%
• Latvia: ~24.5%
• Estonia: ~23.7%

Lithuania’s majority share underscores how quickly its pipeline of bankable infrastructure and transition projects is maturing. Latvia’s record year suggests a step-change in investment readiness, while Estonia’s stable delivery highlights consistency: clean power, grid upgrades, and digital infrastructure remained central in 2025. 

2) The defining feature: over 95% went to green transition and energy security

Infographic 2. 2025 split of EBRD investment in the Baltics: Lithuania ~51.8%, Latvia ~24.5%, Estonia ~23.7%. Source: EBRD. 

EBRD says more than 95% of total Baltic financing supported investments aimed at energy security and decarbonisation. Even taking the minimum implied by “more than 95%,” that’s at least ~€621m of the €654m directed to transition-aligned outcomes.

The point isn’t branding. In the Baltic context, “green” increasingly functions as a resilience strategy: more domestic renewable generation, more flexibility through storage, and more robust networks reduce vulnerability to external shocks and improve long-term cost stability. 

3) Where the money went: “anchor” projects show the system logic

Infographic 3. EBRD: >95% of Baltic financing in 2025 supported the green transition and energy security. Source: EBRD. 

EBRD highlights several transactions that illustrate how the transition is being built as a connected system—from generation to storage to end-user infrastructure.

Highlighted projects (as cited by EBRD):

• €79.5m for Lithuania’s Kelmė Wind Park, described as the largest onshore wind farm in the Baltics
• €35.2m loan to Sunly to build four hybrid solar parks in Latvia
• €27m investment in a standalone merchant battery energy storage system (BSP) near Tallinn
• €60m for Ignitis to roll out 600 EV charging stations across the Baltic states

These highlighted items total €201.7m—roughly 30.9% of the year’s Baltic volume—while the full portfolio spans a broader set of projects.

Why this mix matters:

• Renewables (wind/solar) increase domestic supply and reduce dependence on imported energy inputs.
• Battery storage is critical as variable renewables scale; it improves system flexibility and reliability.
• EV charging networks translate transition financing into everyday infrastructure, unlocking demand-side decarbonisation. 

4) The “system build” thesis: generation + grids + storage + demand

Infographic 4. Highlighted projects: Kelmė Wind Park (€79.5m), Ignitis EV charging (€60m), Sunly hybrid solar (€35.2m), BSP battery storage (€27m). Source: EBRD. 

Taken together, the portfolio reads less like a list of green deals and more like a deliberate sequencing of energy transition infrastructure:

• Generation: wind and solar
• Flexibility: battery storage
• Networks: grid upgrades and reliability
• Demand enablement: EV charging + resource efficiency

This approach helps avoid a common transition bottleneck: adding renewable capacity faster than grids and flexibility resources can absorb it. 

5) The second story behind the record: deeper pan-Baltic capital markets

EBRD’s 2025 results also highlight a parallel track: strengthening the region’s ability to finance growth through capital markets—not only through bank lending.

A) A regional acceleration fund for listings and bonds

EBRD’s policy dialogue efforts supported the creation of the Baltic Capital Markets Acceleration Fund, designed to help SMEs and mid-caps prepare for stock listings and bond issuance. This matters because many firms can be operationally strong but “capital market unready”—missing governance structures, reporting standards, or investor-facing frameworks.

B) Lithuania: first green securitisation in the region

EBRD committed €50m to ILTE’s €112m bond issuance backed by a portfolio of energy efficiency loans, described as the Baltic region’s first green securitisation. If replicated, this mechanism can improve the speed and scale of energy-efficiency lending by enabling the recycling of balance-sheet capacity into new projects.

C) Estonia: legal reforms to improve market attractiveness

In Estonia, EBRD supported reforms to the Securities Market Act, approved by parliament, aimed at enhancing the investment climate, stimulating capital-market activity, and improving the attractiveness of local enterprises and financial institutions to global investors. 

6) What this means beyond energy: second-order impacts

For businesses
More transition-aligned energy supply and infrastructure can improve cost predictability and export competitiveness (carbon footprint requirements increasingly influence supply chains).
Better-functioning capital markets widen financing options—bonds, equity, and hybrid instruments—especially for scaling innovators.
EV infrastructure supports corporate fleet electrification and new mobility services.

For consumers
A more flexible, modernised energy system can reduce exposure to price and supply shocks.
Charging networks remove a practical barrier to EV adoption. 

7) The wider EBRD context: Baltics within a record year

EBRD states it invested a record €16.8 billion across its economies in 2025, with 75% going to the private sector, and €9.4 billion channelled to projects supporting the green transition. In that wider picture, the Baltics stand out as a region where the “green” mandate is translating into concrete infrastructure—quickly, and at scale. 

8) 2026 outlook: momentum and visibility

Tomas Kairys, EBRD Head of the Baltic States, said the record delivery reflects the “growing sophistication and investment appetite” of Baltic businesses and that EBRD will continue to respond to market needs in 2026 through climate investments, expanded financing and capital market instruments, and debt/equity solutions to help companies innovate, scale, and export. EBRD also notes its Annual Meeting will take place in Riga this year—typically a visibility boost that can catalyse new announcements.
Bottom line

The €654m record is best understood as a strategic signal: the Baltics are moving from transition “projects” to transition systems—renewables tied to flexibility, modern grids, and demand infrastructure—while simultaneously building the financial plumbing (capital markets, securitisation, legal reforms) needed to keep investment scaling.