Georgia to benefit from major new green finance package

A new Green Economy Financing Facility (GEFF) for Georgia will benefit from 54 million US dollars in finance provided by the European Bank for Reconstruction and Development (EBRD) in partnership with the Green Climate Fund, a UN-powered financing platform and with support from the Austrian Federal Ministry of Finance.

The main aim of the GEFF for Georgia is to support investments in energy efficiency, as well as climate change mitigation and adaptation by SMEs, corporations and residential households.

Possible investments include energy-efficient construction materials, double-glazed windows and doors, thermal insulation, lighting, construction, agricultural equipment and machinery, photovoltaic solar panels, geothermal heat pumps and water-efficient irrigation systems, the EBRD said in a statement.

GEFF follows the successful completion of Energocredit, the EBRD’s previous green funding facility supported by the EU and the Austrian finance ministry. Since the launch of the previous funding package in 2012, 31 companies and more than 29,000 households have together received in excess of 42 million euros (close to 47 million US dollars) in green financing through six local banks.

“GEFF Georgia will contribute to a green economy in Georgia by supporting the expansion of green finance in accordance with the EBRD’s Green Economy Transition standards. In addition, the donor funding will help ensure that women and men have equal opportunities to access finance to run their businesses,” the bank added.