EBRD and EU launch Green Economy Financing Facility for the Palestinian economy

The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) have launched the Green Economy Financing Facility (GEFF) to expand access to finance for green investments in the Palestinian economy, according to a press release published on 22 October 2026. The programme is designed to help businesses and households lower costs, improve competitiveness and strengthen climate resilience. It will channel funding through local partner financial institutions. Investments already supported are expected to save over 12,600 MWh of energy and avoid 3,700 tonnes of CO₂ emissions each year. The initiative marks a joint EBRD-EU effort to accelerate the green transition.

The facility targets investments in renewable energy, energy and resource efficiency, green buildings, circular economy solutions and waste management. These areas were selected to deliver cost savings and environmental gains for end users. The EBRD has been active in the West Bank and Gaza since 2017. Over that period, the Bank has approved 42 projects worth a total of €225 million. The GEFF builds on this existing engagement in the territory.

Through a €25.9 million financing facility, the EBRD is working with local partner financial institutions to increase access to green finance. The programme combines EBRD financing with technical expertise and EU-funded investment incentives of up to 25 per cent. The incentives are available to households and businesses for eligible and verified investments. This blended structure is intended to help accelerate the adoption of high-performance green technologies across the Palestinian economy. Dedicated technical assistance and capacity-building activities will support participating institutions, households and businesses throughout the programme.

The facility also aims at improving access to green finance for women and women-led businesses. GEFF-supported investments are expected to deliver significant environmental benefits. Investments completed under the programme to date are already expected to generate annual savings of 12,656 MWh of primary energy. They are also projected to avoid 3,717 tonnes of carbon dioxide emissions each year. Additional benefits include reduced water consumption and waste generation.

The GEFF launch extends the EBRD and EU partnership supporting sustainable finance in the Palestinian economy. It links concessional incentives with technical expertise to broaden the uptake of green technologies. Local financial institutions will serve as the primary channel for reaching businesses and households. Women and women-led businesses are a specific focus of the facility. The programme reinforces the EBRD’s engagement in the West Bank and Gaza since 2017.