The European Bank for Reconstruction and Development (EBRD) on 21 November launched the Green Economy Financing Facility (GEFF) Tajikistan, which will give better access to climate finance to farmers, businesses and homeowners in Tajikistan.
According to the EBRD, the $25 million facility will offer loans for investments in high-performing technologies that improve the use of water, energy and land resources in Tajikistan, in partnership with local financial institutions.
Humo, a local microfinance institution, is the first partner to join the facility, with a loan of $1 million for on-lending to its clients, the Bank said.
These loans will cover investments in technologies such as drip irrigation, rainwater harvesting and storage, solar panels and energy-efficient cold-storage facilities. Beneficiaries can identify climate friendly technologies through the Technology Selector database and are supported by the GEFF Tajikistan technical assistance team.
GEFF Tajikistan is supported by the European Union, the Green Climate Fund (GCF) and South Korea. The EU offers approximately $4million of investment incentives to farmers and businesses so that investment in modern and efficient technologies can boost their competitiveness and bring environmental and social benefits.
GEFF Tajikistan blends $6.25 million of GCF concessional finance with $18.75 million of EBRD finance, the EBRD said, adding that over $3 million of funding for technical assistance is contributed by the GCF and South Korea.
GEFF Tajikistan supports gender activities that aim to enhance women and men’s equal opportunity to access finance for green technologies.
The EBRD noted that GEFF Tajikistan builds on the successful experience of its predecessors, such as the-ECTAP facility, which increased access to finance in the agricultural sector, and CLIMADAPT, which piloted financing for climate resilience.
The EU is a strong partner of the EBRD in climate action and supports 14 GEFFs across Central Asia and beyond. To date, the GCF has been supporting EBRD programmes worth US$ 830 million, catalysing more than US$ 3.6 billion in total project value. The GCF is the largest climate fund in the world to support developing countries’ efforts to respond to the challenge of climate change.
The EBRD has invested nearly €670 million in various sectors of Tajikistan’s economy to date. The country is highly vulnerable to climate change, with water resources, the agricultural sector, transport infrastructure and public health particularly exposed.