The European Investment Bank (EIB) is extending support for the Green for Growth Fund (GGF) to strengthen investment for North African renewable energy projects.
Over the last six years, the bank has provided €50m for the climate fund and this new proposal includes a contribution of an additional £25m.
The initiative will enable investments on small-scale energy efficiency projects in Morocco, Egypt, and Tunisia, as well as Lebanon, Jordan, and the Palestinian Territories.
Primarily, the focus will be on projects designed to cut usage of energy and generate high-energy savings, as well as reduce CO² emissions.
The EIB's vice-president Jonathan Taylor said: “Unlocking new investment in renewable energy and energy efficiency is a global challenge and the GGF has an impressive track record that has already enabled more sustainable energy use in Southeast Europe and the European eastern neighbourhood.
“The European Investment Bank is committed to strengthening the local impact of climate-related investment and the planned expansion of the GGF to North Africa and the Middle East can help to reduce emissions and provide a sustainable alternative to fossil fuels use across the region.”
GGF offers its assistance to the financial and non-financial intermediaries, including commercial banks and microfinance institutions, for investment in renewable energy and energy efficiency schemes.
Taylor added: “Ratification of the Paris Climate Agreement earlier this month represents a global commitment to tackle climate change and unlocking climate finance backed by public and private investors to ensure a local impact, as already successfully demonstrated by the GGF, has been recognised by countries around the world as essential.”
Expansion of the GGF is intended to be finalised by the end of this year.