BAKU, Azerbaijan, September 15. The European Bank for Reconstruction and Development (EBRD), in partnership with the European Union (EU), has launched the Green Economy Financing Facility (GEFF) program in the West Bank to support the transition to a greener economy, Trend reports.
The program will provide up to 25.9 million euros in senior unsecured loans to four local financial institutions over the next seven years. These funds will be on-lent to Palestinian micro, small, and medium-sized enterprises (MSMEs) and households, with a focus on gender-responsive financing for investments in small-scale renewable energy, water- and energy-efficiency, and other resource-saving projects.
Palestinian MSMEs account for more than 95% of businesses in the West Bank and Gaza and contribute over 55% of GDP, yet access to financing for green technologies remains limited. Rising energy and water consumption, coupled with high fuel costs and dependence on imported power, make the transition to sustainable solutions urgent.
The EU is also providing up to 5.2 million euros in investment grants through the Sustainable Growth4All Program to encourage MSMEs and households to adopt green technologies and reduce operational costs. Technical assistance funded by the EU will support partner financial institutions in identifying and appraising green investment opportunities, while embedding a gender focus and raising awareness of the benefits of sustainable technologies.
Since beginning operations in the West Bank and Gaza in 2017, the EBRD has approved 36 projects totaling 185.5 million euros, demonstrating its commitment to supporting sustainable growth in the region.