The European Bank for Reconstruction and Development has launched a $634 million program to expand green financing across 13 countries, with the Green Climate Fund providing $200 million in concessional loans and grants, according to a press release. The “Greening financial systems: delivering climate finance for all” initiative will work through local banks to reach households, small businesses, municipalities and corporations across Central Asia, the Caucasus, North Africa, and the Balkans. The program expands on EBRD’s previous $1.4 billion Green Economy Financing Facility.
Many potential borrowers struggle to access green financing because of higher costs and limited bank expertise in climate projects. The program tackles this by giving partner banks subsidized funding, climate risk tools, and training to develop green lending products. Target countries include Armenia, Egypt, Georgia, Jordan, Kazakhstan, Mongolia, Morocco, and six others where green investment gaps persist.
Banks that participate receive financial incentives for creating climate transition plans aligned with Paris Agreement goals, helping them integrate green finance into their operations. The program sets inclusion targets: at least 30 percent of loans must go to projects outside capital cities and 20 percent to women-led ventures. Funding will cover energy efficiency improvements, renewable energy installations, sustainable construction, and climate-resilient infrastructure.
EBRD and the Green Climate Fund have partnered since 2017 to mobilize over $5.2 billion in climate finance, proving the model works for scaling green investment in emerging markets.
