The European Union and the European Bank for Reconstruction and Development (EBRD) are providing some €61 mln in ‘green finance’ to support green, innovative investments in Egypt, Morocco and Eastern Partnership countries to help them adopt energy efficiency measures, cut energy costs and support the circular economy.
The EU is providing a total of €61.3 mln in grants to support three EBRD programmes helping businesses invest in energy efficiency, cut their carbon footprint, introduce innovative green technologies, support the circular economy and improve legal frameworks for energy and resource efficiency investments.
Climate finance is a crucial instrument for green investments, to increase the use of renewable energy and to build a low-carbon future, especially at a time when the coronavirus pandemic and the drop in fossil fuel prices threaten climate action progress.
The EBRD and the EU via Team Europe are committed to accelerating a green recovery in the countries where they work together, the two institutions said in a joint announcement.
In Egypt, a €24.8 mln grant from the EU will support the EBRD’s Green Energy Financing Facility (GEFF), which focuses on supporting energy-efficient and renewable energy investments through local financial institutions for lending on to private companies.
Similarly, in Morocco, GEFF will benefit from a €21.1 mln EU grant that will allow local businesses to invest in green technologies. Beneficiaries will reduce their costs by implementing climate adaptation measures, energy-efficient and renewable-energy technologies, thus also improving their overall competitiveness.
In the Eastern Partnership region of Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine, €15.4 mln from the EU4Climate initiative will be channelled through the EBRD’s Finance and Technology Transfer Centre for Climate Change (FINTECC) programme to corporate sector clients.
This will be facilitated via investment grants, technical assistance and the offer of climate innovation vouchers, which are expected to accelerate the adoption of innovative climate technologies and sustainable business practices.
“On top of our investments, we will also focus on improving the regulatory framework for such green investments to develop a sustainable market for climate technology in the region,” said Pierre Heilbronn, EBRD Vice President, Policy and Partnerships.
“In Egypt and Morocco as well as in the Eastern Partnership countries, our joint support will help to step up energy-efficient and renewable-energy investments in the private sector, thus helping to build sustainable economies,” added Olivér Várhelyi, the EU’s Commissioner for Neighbourhood and Enlargement.