ransition economies of Central andEastern Europe (CEE) produced 7.4 percent of the world GDP and emitted 11.5per cent of energy-related global CO2emissions in 2007. The EBRD, whose mandate is topromote the transition of the region to a modern marketeconomy, considers climate change mitigation animportant element of this process.A number of the most energy intensive economies inthe world are located in the CEE region, includingAzerbaijan, Kazakhstan, Ukraine and Uzbekistan. Dueto heavy reliance on fossil fuels, and obsoletetransformation and delivery technologies, carbonintensity is also high in the region, with Ukraine carbonemissions per unit of GDP being almost three timesthat of Germany. Driven by the sharp economic restructuring involving theclosure or downsizing of large energy intensive industriesbetween 1990 and 2000, emissions in the regiondecreased by 33 per cent. This reduction was a majordeterminant in keeping global emissions from growingeven faster than they did over that period. However,since 2000, this pattern has been reversed as economicgrowth and emissions from the region have been risingagain. While the high energy intensity of the region stemsnot only from wasteful practices or economic structurebut from its climate and geography, the continued highlevels of energy and carbon intensity mean that theRight:The most energy-intensive economies ofthe world are in the transition region -including Azerbaijan,Kazakhstan, Ukraine and UzbekistanSCALING-UP CLIMATE FINANCING IN THE TRANSITION REGIONREGIONAL 046PERSPECTIVESTTHOMAS MIROW, PRESIDENT, EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT (EBRD)?