EU grants over 40M$ for EBRD’s green programmes in Egypt and Morocco

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The EU is providing a total of 70 million US$ in grants to support three of the European Bank for Reconstruction and Development (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.

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.

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 Egypt, the EU has provided a 28.1 million US$ grant to support the European Bank for Reconstruction and Development’s Green Energy Financing Facility (GEFF)  The facility focuses on supporting energy efficiency and renewable energy investments in the form of private company loans through local financial institutions.

In Morocco, the GEFF will benefit from a 23.9 million US$ 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, 17.5 million US$ 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.

“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.” Pierre Heilbronn, EBRD Vice-President for Policy and Partnerships, said.

Olivér Varhelyi, 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.”

Varhelyi 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 over 38 billion US$ in green investments, financed more than 1,900 green projects and reduced over 102 million tonnes of carbon dioxide emissions.

Climate finance is a crucial instrument for green investments, to increase the use of renewable energy and to build a low-carbon future.