The Green Economy Financing Facility (GEFF) framework is set to provide up to €25.9 million in senior unsecured loans to Participating Financial Institutions (PFIs) in the West Bank and Gaza (WB&G).
Approved on 17 July, the GEFF aims to support banks, microfinance institutions (MFIs), and leasing companies in promoting gender-responsive financing for private Micro-, Small, and Medium-sized Enterprises (MSMEs) and residential borrowers. These funds will target small-scale renewable energy, water, energy, and resource efficiency projects, incorporating the circular economy concept.
The GEFF framework, funded by the WB&G Trust Fund and supported by the European Union’s Sustainable Growth4All Program, will also bolster green technology supply chains in WB&G. This initiative seeks to address MSMEs’ challenges such as restricted access to capital, limited technical skills, and conservative management practices, which hinder their investment in high-performing technologies and solutions.
The West Bank and Gaza Trust Fund promotes private sector investment and economic development by offering political risk insurance to local and foreign investors. Administered by the Multilateral Investment Guarantee Agency (MIGA), the fund is sponsored by the Palestinian Authority and the Government of Japan, with participation from the World Bank.
The primary goal of the GEFF framework is to facilitate MSMEs in overcoming barriers to innovation and technology adoption by providing necessary financing and expertise. This support will enable investments in renewable energy, water, energy, and resource efficiency projects, thereby promoting environmentally sustainable, low-carbon, and climate-resilient economies in WB&G.
The framework aims to create a significant transition impact by funding up to four financial intermediaries to finance climate technologies and solutions. This green initiative is expected to drive WB&G towards environmentally sustainable economic practices.
The facility will be available to banks, microfinance institutions, and leasing companies in WB&G, subject to the European Bank for Reconstruction and Development’s (EBRD) due diligence.
The total project cost amounts to €25,930,000.
