Pinsent Masons, the international law firm, has advised the Spanish engineering and construction company Técnicas Reunidas on a collaborative effort with the International Finance Corporation (IFC) to speed up the process of decarbonization in Eastern European economies. A Memorandum of Understanding (MoU) has been signed between Técnicas Reunidas and the IFC, the private sector branch of the World Bank, initiating a joint effort to encourage decarbonization by developing projects that make use of low-carbon technologies. The collaboration endeavors to promote such projects in 15 Eastern European countries.
On behalf of Técnicas Reunidas, guidance was provided by the Madrid-based Pinsent Masons team headed by partners Hermenegildo Altozano and Juan de Navasqüés, as disclosed by a representative from the law firm to Law.com International. This formidable duo joined the firm in April. An in-house legal team from the IFC handled their end of the agreement without external counsel.
Diving deeper into the collaboration’s role, Técnicas Reunidas and the IFC will identify and develop partnerships and projects designed to hasten the energy transition from fossil fuels to low carbon and clean fuels in these specified countries: Albania, Armenia, Azerbaijan, Bosnia and Herzegovina, Bulgaria, Croatia, Georgia, Kosovo, Moldova, Montenegro, North Macedonia, Poland, Romania, Serbia, and Ukraine.
A substantial commitment to investment is required to progress this initiative successfully. More than €35 billion is necessary for sustainable fuels, carbon capture units, and low carbon hydrogen and derivatives. These countries contribute to nearly 800 million tons of carbon dioxide each year, representing approximately 30% of the European Union’s total emissions, as reported by Técnicas Reunidas. Some of the major contributors to these emissions are the cement, iron and steel, and chemical industries, all of which are targeted by the MoU, as well as aluminum, glass, and transportation sectors.
Maria Paulina Mogollon, an IFC manager, believes the collaboration “will bring significant value to investors, accelerating the green transition of hard-to-abate industries in the Eastern European region.”