The European Bank for Reconstruction and Development (EBRD) has launched a €163 million (MAD million) program to help companies who want to invest in things such as sustainable energy and green technologies.

The bank launched the “Green Economy Financing Facility Morocco II” (GEFF II) project on Tuesday in Casablanca to finance sustainable energy initiatives with the support of the European Union (EU) and the UN-backed financial instrument Green Climate Fund (GCF).

The GEFF II initiative aims to provide additional financing for private companies investing in the green economy, particularly in sustainable energy, water conservation, waste reduction, green technologies and climate change adaptation tools.

Another goal of the program is to develop and improve the competitiveness of Moroccan companies while reducing carbon dioxide (CO2) emissions.

This would aid Morocco’s energy transition to becoming a resilient, low-emission, and environmentally sustainable economy.

The program is based on a one-stop-shop approach that includes a loan or lease financing for companies, free technical assistance, and an investment grant of 10% of eligible financing received after project verification.

The Secretary-General of the Ministry of Energy Transition and Sustainable Development, Mohamed Benyahya, said the launching of this line of financing is timely, in view of Morocco’s momentum in environment and sustainable development, and the need for an inclusive green recovery of the economy after the crisis of Covid-19.

This line of financing will contribute to Morocco’s efforts to unlock economic potential and revitalize the Moroccan private sector, he said.

EBRD’s Managing Director for the Southern and Eastern Mediterranean Region (SEMED), Heike Harmgart, said that this is the third green financing program launched by the EBRD in Morocco and builds on the success of previous programs.

The European bank has been supporting Moroccan initiatives to boost green economy-related activities in the past year. The Moroccan banking group Societe Generale signed a loan agreement with EBRD in Casablanca in January.

According to the Financial Afrik, a continental business news agency, the Societe Generale banking group will receive a loan of over €20 million to assist Small and Medium-Sized Enterprises (SMEs) engaged in the green economy.