GCF GEFF Regional - Extension II

Location:

Regional

Project number:

52401

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

10 Mar 2021

Status:

Cancelled

PSD disclosed:

01 Feb 2021

Project Description

The second extension (Extension II) of a financing package from EBRD and GCF delivered via the Bank's Green Economy Financing Facilities, which provides debt financing to financial institutions in EBRD countries of operations for climate change mitigation and adaptation investments. The project represents the second extension of the GCF GEFF Regional Framework (Project number 50223). 

Extension II will consist of a further allocation of a financing package of up to USD 497 million, of which USD 373 million will be provided by the Bank's ordinary resources and up to USD 124 million by the Green Climate Fund to be deployed under Green Economy Financing Facilities in Armenia, Egypt, Georgia, Jordan, Moldova, Mongolia, Morocco, Serbia, Tajikistan and Tunisia.

Extension II will continue to 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 the Green Economy Transition.

Project Objectives

Extension II will continue to 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 EBRD Green Economy Transition Approach.

Extension II will deliver scale by supporting the financing of more than 6,500 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

ETI score: null

The third allocation of funds under the GCF GEFF Regional Framework through Extension II will continue to promote the transition to environmentally sustainable, low-carbon and climate-resilient economies in 10  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, micro-finance institutions and leasing companies operating in the eligible countries.

EBRD Finance Summary

USD 373,000,000.00

Total Project Cost

USD 373,000,000.00

Extension II will consist of a further allocation of USD 373 million to be provided by the Bank's own resources and up to USD 124 million to be provided by the Green Climate Fund.

Additionality

Local financial institutions and their clients under the GCF GEFF Regional Framework will benefit from technical assistance to increase their capacity to identify, assess and finance green sub-projects. Local financial institutions will also make use of the EBRD's expertise to enhance the gender responsive approach under the GCF GEFF Regional Framework, helping sub-borrowers build their resilience in the face of a changing climate.

Environmental and Social Summary

Categorised FI (ESP 2019). GEFF transactions offer significant environmental opportunities. Local financial institutions will be required to comply with EBRD's PRs 2, 4 & 9, including the expanded exclusion list introduced with ESP 2019 and the Referral Requirement. Eligible sub-projects will be required to comply with national environmental, social, labour, health and safety legislation as well as the Environmental and Social eligibility criteria, where applicable. Any new local financial institutions will be required to complete the E&S Due Diligence Questionnaire for FIs and submit it to ESD for review to establish their compliance with the PRs. All local financial institutions will be required to submit Annual Environmental and Social Reports to the Bank, and report on sub-projects and their climate change mitigation and adaptation benefits.

Technical Cooperation and Grant Financing

The Extension II will be supported by a TC package of approx. USD 24 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.

PSD last updated

01 Feb 2021

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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