The European Bank for Reconstruction and Development (EBRD), in partnership with the European Union (EU), has launched the Green Economy Financing Facility (GEFF) in the West Bank to accelerate the shift toward a greener and more sustainable economy. The programme is designed to strengthen private-sector and residential investments in small-scale renewable energy as well as water-, energy- and resource-efficiency projects, helping households and businesses adopt climate-friendly solutions.
Through the GEFF, up to €25.9 million in senior unsecured loans will be provided to four local financial institutions over the next seven years. These funds will be made available as gender-responsive on-lending to Palestinian micro, small and medium-sized enterprises (MSMEs) and households. The initiative focuses on boosting the transition to a low-carbon, climate-resilient economy in a region where access to financing for green technologies remains limited. MSMEs dominate the local economy, accounting for over 95% of businesses and contributing more than half of the GDP in the West Bank and Gaza.
The region’s growing population, coupled with climate change, has led to rising energy and water consumption. This, combined with high fuel and energy costs and reliance on imported power, makes the adoption of renewable and efficient technologies crucial. To support this transition, the EU will provide investment grants of up to €5.2 million through the Sustainable Growth4All Programme. These grants are aimed at incentivizing green investments, encouraging MSMEs and households to reduce costs while adopting energy- and water-efficient technologies that also contribute to climate change mitigation and adaptation.
In addition, the EU will fund technical assistance to help local financial institutions strengthen their capacity to identify, evaluate, and implement green investment opportunities. This support will also raise awareness of the financial and environmental benefits of green technologies, enhance MSMEs’ ability to select the right solutions, and embed a gender focus in both investments and advisory services.
Since starting operations in the West Bank and Gaza in 2017, the EBRD has approved 36 projects worth €185.5 million. The new GEFF initiative represents another step forward in fostering sustainable development and green growth in the region while supporting local businesses and households in their transition to cleaner and more efficient technologies.
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