The European Bank for Reconstruction and Development (EBRD) has unveiled the 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 Participating Financial Institutions (PFIs), including banks, microfinance institutions (MFIs), and leasing companies.
The GEFF Framework aims to enhance access to capital for private micro, small, and medium-sized 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 bolster green technology supply chains, with funding provided by the WB&G Trust Fund and technical assistance from the European Union’s Sustainable Growth4All Program.
“The GEFF Framework represents a significant step towards a sustainable future in the West Bank and Gaza,” said Anton Ackermann, Senior Associate at EBRD. “By supporting MSMEs and PFIs, we are not only addressing financial barriers but also enhancing local capacities to adopt high-performing green technologies.”
Key project objectives include:
- Facilitating Access to Capital: The framework addresses the capital constraints faced by MSMEs, enabling investments in innovative and efficient technologies.
- Promoting Sustainable Practices: By funding small-scale renewable energy and resource efficiency projects, the initiative supports South Africa’s transition to a low-carbon economy.
- Enhancing Gender Responsiveness: The GEFF Framework incorporates gender-specific considerations, ensuring equitable 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 EBRD’s environmental and social performance requirements, ensuring compliance with local and international standards.
The technical cooperation component, funded by the European Union, will provide essential support to PFIs and sub-borrowers. This includes developing green financing products, raising awareness about 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 stands as a pivotal development, demonstrating the power of collaborative efforts in achieving environmental and economic resilience.
