The European Union (EU) has provided a €24.8m grant to support the European Bank for Reconstruction and Development’s ( EBRD) Green Energy Financing Facility (GEFF) in Egypt.
The facility focuses on supporting energy efficiency and renewable energy investments in the form of private company loans through local financial institutions.
The EBRD and EU are stepping up their support for green investments and climate resilience in Egypt, Morocco, and the Eastern Partnership countries of Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine.
The EU will provide a total of €61.3m in grants to support three EBRD programmes that look to helping businesses invest in energy efficiency, cut their carbon footprint, and introduce innovative green technologies. The funding will also go to supporting the circular economy and improving the legal frameworks for energy and resource efficiency investments.
Climate finance is a crucial part of green investments. It increases the use of renewable energy and build a low-carbon future. The importance of the shift in energy investments comes at a time when the novel coronavirus (COVID-19) pandemic and the drop in fossil fuel prices threaten the progress of climate action. The EBRD and the EU via Team Europe are committed to accelerating a green recovery in the countries where they work together.
In Morocco, the GEFF will benefit from a €21.1m EU grant allowing 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, €15.4m from the EU4Climate initiative will be channelled through the EBRD’s Finance and Technology Transfer Centre for Climate Change (FINTECC) programme.
It will be given to corporate sector clients 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.
Pierre Heilbronn, EBRD Vice-President for Policy and Partnerships, said, “Our strong cooperation with the EU will bring concrete benefits for the environment in the countries where we jointly provide climate finance and support. 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.”
Olivér Várhelyi, European Union Commissioner for Neighbourhood and Enlargement, said, “Our longstanding cooperation with the EBRD is extremely valuable, including in the domain of green finance where the bank has important experience.”
Várhelyi added, “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, and help to build sustainable economies.”
To date, the EBRD has signed €34bn in green investments, financed more than 1,900 green projects and reduced over 102 million tonnes of carbon dioxide emissions.