The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) announced on Sunday that they are stepping up their support for green investments and climate resilience in Egypt, Morocco and the countries of the Eastern Partnership including Armenia, Azerbaijan, Belarus, Georgia, Moldova, and Ukraine.
In Egypt, a €24.8 million 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, the EBRD said.
The EU is providing a total of €61.3 million in grants to support three EBRD programs 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, the EBRD said.
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 COVID-19 pandemic and the drop in fossil fuel prices threaten climate action progress, according to the EBRD.
The EBRD and the EU, via Team Europe, are committed to accelerating a green recovery in the countries where they work together.
In Morocco, GEFF will benefit from a €21.1 million 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, €15.4 million from the EU4Climate initiative will be channeled through the EBRD’s Finance and Technology Transfer Centre for Climate Change (FINTECC) program 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.
“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,” EBRD Vice President, Policy and Partnerships Pierre Heilbronn said.
Meanwhile, EU Commissioner for Neighborhood and Enlargement Olivér Várhelyi said that in Egypt and Morocco, as well as in the Eastern Partnership countries, the joint support will help to step up energy-efficient and renewable-energy investments in the private sector, thus helping to build sustainable economies.
To date, the EBRD has signed €34 billion in green investments, financed more than 1,900 green projects, and reduced over 102 million tons of carbon dioxide emissions.