EBRD's first green loan boosts Bulgaria copper recycling

The European Bank for Reconstruction and Development (EBRD) is providing a €20 million loan to copper fabricator Sofia Med in Bulgaria, according to an EBRD press release. Backed by an EU guarantee under the InvestEU programme, this marks the bank’s first sustainability-linked loan in the country, tying lower interest rates to green performance targets like increased recycling and better water use. Copper is essential for renewables, electric vehicles, and grid upgrades as Bulgaria accelerates its green transition.

Europe faces a copper scrap shortage, with half its scrap exported despite 30% of global demand coming from recycling. Sofia Med will expand scrap collection and recycling capacity to use more secondary copper, reducing reliance on virgin materials. The loan incentivizes measurable gains in recycled content and water efficiency, helping address Bulgaria’s need for infrastructure upgrades.

Sofia Med, a subsidiary of European metals giant Viohalco, has partnered with EBRD for a decade on energy efficiency and green products across Bulgaria and Greece. EBRD’s Country Strategy for Bulgaria (2025-30) prioritizes industrial decarbonization and resource efficiency. As one of Bulgaria’s largest investors, EBRD has committed over €5 billion to 320 projects since entering the market.