The European Bank for Reconstruction and Development (EBRD) has unveiled a Green Economy Financing Facility (GEFF) framework designed to foster a low-carbon economy in the West Bank and Gaza. The initiative allocates up to €25.9 million in senior unsecured loans to local equity finance institutions (PFIs), including banks, microfinance institutions (MFIs) and leasing companies.
The GEFF framework aims to improve access to capital for private micro, small and medium enterprises (MSMEs) and residential borrowers. By focusing on small-scale renewable energy, water, energy and resource efficiency projects, the facility will address the region’s pressing environmental challenges while promoting gender-responsive investments. The initiative will also improve green technology supply chains with funding provided by the WB&G Trust Fund and technical assistance from the EU’s Sustainable Development4All programme.
„The GEFF framework represents a significant step towards a sustainable future in the West Bank and Gaza,” said Anton Ackermann, Senior Associate at the EBRD. „By supporting MSMEs and PFIs, we not only address financial barriers but also develop local capacities to adopt high-performance green technologies.”
Key project objectives include:
- Facilitating access to capital: This framework addresses capital constraints faced by MSMEs, enabling investments in innovative and efficient technologies.
- Promoting sustainable practices: The initiative supports South Africa’s transition to a low-carbon economy by funding small-scale renewable energy and resource efficiency projects.
- Promoting Gender Responsiveness: The GEFF framework incorporates gender considerations and ensures equal access to financial and technical resources.
The initiative is expected to have a transformative impact by reducing greenhouse gas emissions and promoting climate-resilient economic activities. PFIs participating in the framework will adhere to the EBRD’s environmental and social performance requirements and ensure compliance with local and international standards.
The EU-funded technical cooperation component will provide essential support to PFIs and sub-borrowers. These include developing green financing products, raising awareness of the benefits of green technologies, and embedding gender perspectives in investment decisions.
As South Africa continues its journey towards a sustainable, low-carbon future, the GEFF framework is an important development that demonstrates the power of collaborative efforts in achieving environmental and economic resilience.
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