- EBRD and GCF launch US$ 50 million Green Economy Financing Facility Tajikistan II
- New GEFF to promote energy- and resource-efficiency technologies
- Technical support from South Korea and Austria
The European Bank for Reconstruction and Development (EBRD) is committing fresh funds to facilitating better access to green technologies and climate adaptation for businesses and households in Tajikistan, a country badly affected by climate change.
The US$ 50 million Tajikistan Green Economy Financing Facility II (GEFF Tajikistan II), launched by the EBRD and the Green Climate Fund (GCF), will promote higher standards of energy and resource efficiency and support the country’s transition to a greener economy. GEFF Tajikistan II will encourage residential and commercial borrowers to invest in green and innovative solutions (available through the programme’s website) that promote the efficient use of water and the sustainable management of land. It will pay special attention to the country’s agribusiness sector, which employs almost half of Tajikistan’s workforce and is responsible for more than 22.5 per cent of gross domestic product.
Up to US$ 13 million, including US$ 11 million under GEFF Tajikistan II, will be earmarked for three domestic financial institutions: Bank Arvand (US$ 4 million), microlenders Humo (US$ 5 million) and Imon International (US$ 4 million). With a joint base of more than 540,000 clients and operational even in remote mountainous parts of the country, the three institutions are well placed to bring much-needed green finance to even the smallest borrowers across Tajikistan.
The new facility builds on the US$ 25 million Green Economy Financing Facility I (GEFF Tajikistan I), which was supported by the European Union and operational from 2019 to 2023. GEFF Tajikistan I supported more than 4,600 sub-projects. Each year, these generated over 24,000 MWh of energy savings, reduced CO2 emissions by 5,195 tonnes and cut water consumption by 5.2 million m3.
GEFF Tajikistan II is supported by donor funding from South Korea, Austria and the GCF. It will support engagement in policy dialogue with the National Bank of Tajikistan to build capacity and manage climate risk at participating banks.
Launched in 2006, the EBRD’s wider GEFF programme is now being implemented in 29 economies. To date, the facility has provided €6.3 billion to more than 230,000 clients.
In 2023, the EBRD is marking 30 years since Tajikistan joined the Bank. So far, the EBRD has invested more than €900 million through almost 160 projects in the country.