The European Bank for Reconstruction and Development (EBRD) has launched a new programme titled “Greening Financial Systems: Delivering Climate Finance for All.” In a press release, the bank said it expects the programme to achieve US$634 million in green financing and that it will be rolled out in 13 countries across the EBRD regions: Armenia, Egypt, Georgia, Jordan, Kazakhstan, the Kyrgyz Republic, Moldova, Mongolia, Morocco, North Macedonia, Serbia, Tajikistan and Uzbekistan.
The bank said, “As part of this initiative, the EBRD and its longstanding partner and donor, the Green Climate Fund (GCF), have signed an agreement for a US$200 million contribution by the GCF, comprising concessional loans, incentive grants and technical assistance.”
It added, “The programme is designed to make green finance affordable and accessible to a wide range of beneficiaries, from households, smallholders and micro, small and medium-sized enterprises (MSMEs) to municipalities, utilities and larger corporates.”
About the Financial Institution Partnership
The EBRD explained, “Through partner financial institutions, concessional finance and advisory services will be deployed to fund green investments such as energy efficiency, renewable energy, sustainable construction and climate-resilient technologies. Building on the success of the US$1.4 billion programme Green Economy Financing Facility (GEFF), which includes a US$378 million contribution from the GCF, the new programme aims to achieve a transformative market shift.”
The EBRD further explained, “Partner financial institutions will receive concessional funding, climate-risk tools and training to unlock green lending opportunities. They will also acquire the skills and institutional capacity to offer green finance products independently, embedding climate finance into their business models. To encourage systemic change, the programme offers financial incentives to partner financial institutions that commit to delivering climate transition plans aligned with the Paris Agreement.”
Additionally, the EBRD said the programme will promote regional and gender inclusion by ensuring that at least 30 per cent of subloans are provided outside capital cities and at least 20 per cent are offered to women-led projects. Since 2017, the EBRD and the GCF have partnered to mobilise more than US$5.2 billion in climate finance, supporting transformative mitigation and adaptation projects on three continents.
