The European Investment Bank today confirmed plans to strengthen support for the Green for Growth Fund to enable new investment in small scale energy efficiency and renewable energy projects across North Africa, in Morocco, Egypt and Tunisia, as well as Lebanon, Jordan and the Palestinian Territories. Expanded geographic engagement of the specialist climate fund to the southern Mediterranean region will focus investment on projects that can generate high energy savings and significant CO2 reduction in countries that have high levels of fossil fuel use, limited renewable energy and restricted implementation of energy efficiency schemes.
“Unlocking new investment in renewable energy and energy efficiency is a global challenge and the Green for Growth Fund has an impressive track record that has already enabled more sustainable energy use in Southeast Europe and the European eastern neighbourhood. The European Investment Bank is committed to strengthening the local impact of climate related investment and the planned expansion of the Green for Growth Fund to North Africa and the Middle East can help to reduce emissions and provide a sustainable alternative to fossil fuels use across the region.” said Jonathan Taylor, European Investment Bank Vice President.
The Green for Growth Fund provides dedicated credit lines to local financial and non-financial intermediaries, including commercial banks and microfinance institutions, for investment in renewable energy and energy efficiency schemes by local partners, such as businesses, households, municipalities and energy companies. Targeted technical assistance is also used to strengthen environmental and social impact assessment, energy audits and roll out energy efficiency focused credit lines.
At COP 22 currently taking place in Marrakech, Morocco, representatives of the European Investment Bank and the Green for Growth Fund yesterday highlighted how the initiative had already unlocked investment for projects that the EIB could not directly support and confirmed their shared commitment to support new energy efficiency and renewable energy projects.
“The EIB has played a key role in the creation of the Green for Growth Fund and remains one of the fund’s leading partners. We are very pleased about the EIB’s increased commitment, which will help the Green for Growth Fund to attract additional private investors and enable the fund to further expand and build on its proven support for energy efficiency and renewable energy.” said Elvira Lefting, advisor to the Green for Growth Fund.
The EUR 410 million Green for Growth Fund has been backed since 2009 by the EIB and co-initiator KfW, along with partners including EBRD, IFC, FMO, the German Ministry of Economic Cooperation and the European Commission and supported investment by final beneficiaries that saves an estimated 1,300,000 MWh and 329,000 tonnes of CO2 each year.