GCF GEFF Regional - Extension

Location:

Regional

Project number:

51247

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

24 Jul 2019

Status:

Board Approved

PSD disclosed:

20 Jun 2019

Translated version of this PSD: Arabic | ArmenianFrench | Georgian | Moldovan | MongolianRomanian | Russian | Serbian | Tajik

Project Description

Provision of up to USD 400 million for an extension of the GCF-GEFF Regional Framework (Project number 50223). The Extension will consist of a further allocation of USD 300 million of the Bank's ordinary resources and up to USD 100 million provided by the Green Climate Fund, to be deployed via the Bank's Green Economy Financing Facilities in Armenia, Egypt, Georgia, Jordan, Moldova, Mongolia, Morocco, Serbia, Tajikistan, and Tunisia. This Extension will provide financing to qualifying local financial institutions in the eligible countries for on-lending to private sector (businesses, individuals, housing collectives, suppliers and vendors of high performing climate technologies and service providers) for climate change mitigation and climate change adaptation investments, supporting Green Economy Transition.

Project Objectives

The Extension will contribute to creating new and/or notably scaling up existing markets for climate change mitigation and climate change adaptation financing. By doing so, it will contribute to the strategic aim of the Bank's Green Economy Transition Approach especially by reaching out to smaller projects which the Bank would not be able to reach directly. The Extension will deliver scale by supporting the financing of more than 5000 scalable and replicable climate change mitigation and climate change adaptation projects across the industrial, commercial, residential, transport and agricultural sectors. It will address multiple market barriers along the technology supply chains and unlock the potential for private sector investment.

Transition Impact

The second allocation of funds under the GCF-GEFF Regional Framework through the Extension will promote the transition to environmentally sustainable, low-carbon and climate-resilient economies in 10 of the countries where the EBRD invests, preventing these economies from being locked into carbon-intensive, climate-vulnerable and/or environmentally damaging polluting pathways. This will be done by providing funding and know-how to financial intermediaries to finance high performing 'climate' technologies and solutions.

Client Information

Borrowers will be local financial institutions consisting of banks, microfinance institutions, leasing companies and technology vendors operating in the eligible countries.

EBRD Finance Summary

USD 300,000,000.00

To be co-financed with the Green Climate Fund, with up to USD 100,000,000.

Total Project Cost

USD 300,000,000.00

Environmental and Social Summary

Categorised FI (ESP 2014). All Participating Financial Institutions (PFIs) under the Extension will be required to comply with EBRD's Performance Requirements 2, 4 and 9, and adopt and implement the applicable EBRD's E&S Risk Management Procedures for Financial Institutions. Eligible sub-projects will be required to be in compliance with the national environmental, social, labour, health and safety legislation as well as the Environmental and Social eligibility criteria for Renewable Energy and Energy Efficiency sub-projects. This will be confirmed to PFIs by a Facility Consultant engaged by the EBRD. All PFIs will be required to submit Annual Environmental and Social Reports to the Bank via the FI Sustainability Index, including reporting on sub-projects and their climate change mitigation and climate change adaptation benefits.

Technical Cooperation

The Extension will be supported by a TC package of approx. USD 21 million for capacity building, marketing, project assessment and general monitoring and reporting. A separate gender component will also be implemented in parallel to help address gender-specific supply and demand obstacles related to design and marketing of green lending products.
 

Business opportunities

For business opportunities or procurement, contact the client company.

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