EBRD and EU launch green investments in the West Bank

• EBRD and EU launch the Green Economy Financing Facility in the West Bank
• New programme to boost private-sector and residential investments in small-scale renewable energy and water-, energy- and resource-efficiency projects
• Programme is accompanied with EU-funded investment grants and technical assistance

The European Bank for Reconstruction and Development and the European Union (EU) launched the Green Economy Financing Facility (GEFF) programme in the West Bank in an effort to support the transition to a greener economy.

The newly rolled-out GEFF programme will provide up to €25.9 million of senior unsecured loans to four local financial institutions for gender-responsive on-lending to Palestinian micro, small and medium-sized enterprises (MSMEs) and residents over the next seven years. This 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 for MSMEs and households based in the West Bank.

Palestinian MSMEs make up over 95 per cent of businesses in the West Bank and Gaza and contribute to more than 55 per cent of gross domestic product. However, access to on-lending remains very limited, especially for green technologies.

The wider region has been experiencing a sharp rise in energy and water consumption driven by population growth and compounded by the effects of climate change. Currently, fuel and energy costs are among the highest in the region, and the area remains entirely dependent on expensive imported power.

The programme will also include investment grants of up to €5.2 million funded by the EU, through the Sustainable Growth4All Programme. These grants are designed to promote the prioritisation and adoption of green investments by MSMEs and households, while encouraging them to achieve the multiple benefits of investing in green technologies and reducing operational costs through energy-, materials- and water-efficiency tools as well as other tools that support climate change adaptation and mitigation.

Technical assistance funded by the EU will support participating partner financial institutions in building their institutional capacity to originate green investment opportunities, identify and appraise potential projects and verify their implementation, to help accelerate investment in sustainable solutions in the Palestinian private and residential sectors. The technical assistance will also raise awareness of the cost effectiveness and multiple benefits of investing in green technologies, enhance the understanding and capacity of MSMEs to select the right green technologies, and embed a gender focus across investments and the provision of advisory services.

Since the start of its operations in the West Bank and Gaza in 2017, the EBRD has approved 36 projects worth a total of €185.5 million.