The European Bank for Reconstruction and Development (EBRD), the European Union (EU), the European Investment Bank (EIB) and the Agence Française de Développement hosted a Green Finance Success conference today to celebrate the impact of the first Green Economy Financing Facility (GEFF) programme that was launched in 2018 in Egypt.
To date, the EBRD, EU, EIB and AFD have provided a total of US$ 154 million in financing under the GEFF programme to National Bank of Kuwait (NBK), Qatar National Bank (QNB), Bank of Alexandria (AlexBank), and Arab African International Bank (AAIB) for on-lending to the private sector for investment in energy efficient technology. The beneficiaries of the programme also received an integrated technical assistance component and financial incentives provided by the European Union.
The event marks the conclusion of the first GEFF programme and is held to celebrate its success and impact on Egypt’s green transition. Over the past seven years, the programme has provided financing and technical support to 130 projects that invested $184 million in green activities. These investments were made in 18 governorates throughout Egypt covering 15 sectors of the economy. As a result, Egypt’s energy needs are expected to be reduced by 1,153 GWH every year – enough to power more than 100,000 new urban homes. Consequently, the equivalent of 287,500 tonnes of CO2 emission will now be mitigated annually.
The event brought together representatives from the public, private, and banking sectors, participating in these programmes. At the event, the EBRD representatives emphasized its leading role in green finance in Egypt and the programme’s environmental and economic impact in the country as well as the importance of raising awareness of the growing need to green financing and capacity building.
The GEFF programme helps businesses to invest in high- performing technologies by providing financing through local partner banks and encourages MSMEs and households to invest in green and innovative technologies that promote renewable energy and water efficiency. The programme also offers capacity-building to help financial institutions enhance their skills and develop tailored products, ensuring their clients have access to the most effective green technologies. Currently, the second edition of the GEFF programme is ongoing with a total of US$ 175.5 million will be made available to local financial institutions to on-lend to the private sector for investments in climate change mitigation and adaptation projects, supporting decarbonisation and competitiveness of the Egyptian economy.
The event was attended by the EBRD Vice President, Policy & Partnerships, Mark Bowman, Managing Director for the Southern and Eastern Mediterranean, Mark Davis, H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, , Lorenzo Vingut, Team Leader for Green and Sustainable Transition, European Union Delegation to Egypt, , Mohamed Madkour,Resident Loan Officer of the European Investment Bank (EIB), and Elsa Faivre, Head of Unit, Environment & Sustainable Finance, Agence Française de Développement (AFD). .
Egypt is a founding member of the EBRD. The Bank has invested more than €13.8 billion in the country through 200 projects since it began investing there in 2012.