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European Union

EBRD and EU Launch Green Economy Financing Facility in West Bank

Strategic Insights

— 2 min read

The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) have launched the Green Economy Financing Facility (GEFF) in the West Bank to support the transition to a greener economy. This new programme will provide up to EUR25.9 million in senior unsecured loans to local financial institutions for on-lending to Palestinian micro, small and medium-sized enterprises (MSMEs) and residents. The programme aims to promote environmentally sustainable, low-carbon and climate-resilient economy by focusing on investments in small-scale renewable energy, water-, energy- and resource-efficiency projects.

Key Takeaways:

  • The GEFF programme will provide up to EUR25.9 million in senior unsecured loans to four local financial institutions for on-lending to Palestinian MSMEs and residents over the next seven years.
  • The programme aims to promote the transition to an environmentally sustainable, low-carbon and climate-resilient economy by focusing on investments in small-scale renewable energy, water-, energy- and resource-efficiency projects.
  • Palestinian MSMEs make up over 95% of businesses in the West Bank and Gaza and contribute to more than 55% of gross domestic product.
  • Access to on-lending remains very limited, especially for green technologies, which is a major challenge in the region.
  • The programme will also include investment grants of up to EUR5.2 million funded by the EU, through the Sustainable Growth4All Programme, to promote the prioritisation and adoption of green investments by MSMEs and households.
  • Technical assistance funded by the EU will support participating partner financial institutions in building their institutional capacity to originate green investment opportunities and raise awareness of the cost effectiveness and multiple benefits of investing in green technologies.
  • The EBRD has approved 36 projects worth a total of EUR185.5 million since the start of its operations in the West Bank and Gaza in 2017.

Statistics:

  • EUR25.9 million: The maximum amount of senior unsecured loans provided by the EBRD to local financial institutions.
  • 7 years: The duration of the GEFF programme.
  • 95%: The percentage of MSMEs in the West Bank and Gaza.
  • 55%: The percentage of GDP contributed by MSMEs in the West Bank and Gaza.
  • EUR5.2 million: The amount of investment grants funded by the EU to promote the prioritisation and adoption of green investments by MSMEs and households.
  • 2017: The year the EBRD started its operations in the West Bank and Gaza.

Sources:

  • European Bank for Reconstruction and Development: "EBRD and EU launch the Green Economy Financing Facility in the West Bank"
  • European Union: "Sustainable Growth4All Programme"

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