EBRD Pledges New Resources for Green Investment in Tajikistan
The European Bank for Reconstruction and Development (EBRD) is committing fresh funds to facilitating better access to green technologies and climate adaptation for businesses and households in Tajikistan, a news release on the bank’s website states.
The US$ 50 million Tajikistan Green Economy Financing Facility II (GEFF Tajikistan II), launched by the EBRD and the Green Climate Fund (GCF), will promote higher standards of energy and resource efficiency and support the country’s transition to a greener economy. GEFF Tajikistan II will encourage residential and commercial borrowers to invest in green and innovative solutions (available through the programme’s website) that promote the efficient use of water and the sustainable management of land. It will pay special attention to the country’s agribusiness sector, which employs almost half of Tajikistan’s workforce and is responsible for more than 22.5 per cent of gross domestic product.
Up to US$ 13 million, including US$ 11 million under GEFF Tajikistan II, will be earmarked for three domestic financial institutions: Bank Arvand (US$ 4 million), microlenders Humo (US$ 5 million) and Imon International (US$ 4 million). With a joint base of more than 540,000 clients and operational even in remote mountainous parts of the country, the three institutions are well placed to bring much-needed green finance to even the smallest borrowers across Tajikistan.
The new facility builds on the US$ 25 million Green Economy Financing Facility I (GEFF Tajikistan I), which was supported by the European Union and operational from 2019 to 2023. GEFF Tajikistan I supported more than 4,600 sub-projects. Each year, these generated over 24,000 MWh of energy savings, reduced CO2 emissions by 5,195 tonnes and cut water consumption by 5.2 million m3.