In the framework of a partnership, the European Union (EU) and the European Bank for Reconstruction and Development (EBRD) are giving several loans worth a total of almost €46 million for renewable energy and energy efficiency in Egypt and Morocco.
The European Union (EU) has recently approved €61.3 million in grants for several European Bank for Reconstruction and Development (EBRD) programmes for green investments and climate change resilience. The grants will benefit two countries in North Africa and the Eastern Partnership (Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine).
The funding is earmarked for Morocco, which is receiving €21.1 million. The subsidy comes under the EBRD’s Green Energy Financing Facility (GEFF), set up to support companies and owners wishing to invest in green technologies. The GEFF programme is implemented through a network of more than 140 local financial institutions in 26 countries, supported by more than €4 billion of the EBRD funding.
In Morocco, the EU grant (via the EBRD) will enable local companies to invest in green technologies. The European Bank for Reconstruction and Development (EBRD) believes the beneficiaries will reduce their operating costs by implementing climate adaptation measures, energy-efficient technologies and renewable energies, which will also improve their overall competitiveness.
Subsidising renewable energy in Egypt
“Climate finance is a key instrument for green investments, for increasing the use of renewable energy and building a low-carbon future, especially at a time when the coronavirus pandemic and falling fossil fuel prices threaten progress on climate action. The EBRD and the EU (…) are committed to accelerating green recovery in the countries where they work together,” says the EBRD.
Its grant will also benefit Egypt, where the financial institution plans to inject €24.8 million under the GEFF to support energy efficiency and renewable energy investments through local banks for loans to private companies. The EBRD’s investment should thus support the Egyptian government’s ambition to increase electricity production from renewable sources.
Jean Marie Takouleu