The Green Economy Financing Facility (GEFF) programme operates through a network of more than 170 local financial institutions across 28 countries supported by over EUR 5 billion of EBRD finance, supports businesses and homeowners wishing to invest in green technologies. It contributes to creating new and/or notably scaling up existing markets for climate change mitigation and climate change adaptation financing across the industrial, commercial, residential, transport and agricultural sectors.
In Tajikistan, the GEFF programme provides finance, technical assistance and investment incentives to the private sector to contribute to the country’s transition to a green economy. GEFF Tajikistan is a product of the European Bank for Reconstruction and Development (EBRD), working in cooperation with the Green Climate Fund (GCF), the Republic of Korea (ROK) and the European Union (EU). The Facility operates through Participating Financial Institutions in Tajikistan, supporting its green economy transition with $25 million of financing for energy and resource efficiency investments.
GEFF Tajikistan [Agricultural Value Chains] supports Tajikistan’s agricultural value chain development. In partnership with the European Union, GEFF Tajikistan [Agricultural Value Chains] offers investment incentives for farmers and businesses investing in modern and efficient equipment and technologies (See Grant Support).
GEFF Tajikistan [Commercial and Residential] aims to help Tajik households and businesses adopt technologies and practices to reduce pressure on water, energy and other resources.
How GEFF works
There are two basic approaches:
Items on the Green Technology Selector are eligible to be financed using GEFF without any further technical approval. All save energy, or save water or use renewable energy. To qualify to appear on the Green Technology Selector, items must meet or exceed high technical performance standards defined by GEFF engineers and set by the EBRD as technical eligibility criteria for GEFF.
Some green investments can benefit from specific solutions that are not obvious or available under the simple “pre-approved” approach described above. In these cases, the EBRD provides free expert advice to help identify the best solutions and ensure that the most appropriate green technologies and services are financed.
To use GEFF, you may either
The technical support is provided by a local GEFF team for various stages of project origination, investment appraisal and project implementation. This helps identify the best solutions and ensure that the investment proposal is technically eligible to be financed under GEFF.
Legacy from past EBRD and EU operations
The Facility builds on the successes and lessons learnt of the pilot EBRD Climate Resilience Financing Facility (CLIMADAPT) and the EU-funded Enhanced competitiveness of Tajik agribusiness (ECTAP) Project. ECTAP builds on the achievements of the Tajik Agricultural Finance Framework – TAFF project, and is playing a key role for the modernization and improvement of agricultural value-chains. The ECTAP Project was marked by clear successes and milestones in its aim to contribute to poverty reduction and economic growth through the enhancement of Tajik agri-food value-chains, agro-food enterprises and the quality and marketing of Tajik agricultural products.
The EBRD Tajikistan Climate Resilience Financing Facility (CLIMADAPT) was a highly successful pilot Facility developed by the EBRD and Climate Investment Funds (CIF) and supported by the UK and the EBRD Early Transition Countries Fund. CLIMADAPT financed technologies that were targeted at improved energy, water and land use which correspond to critical aspects of climate-related vulnerability in Tajikistan. It fully utilized its USD 10 million credit line within a 3-year project period, impacting more than 3,500 beneficiaries and financing more than 20 climate resilience technologies. In the process, it built a new evidence base on how climate resilience efforts can be enhanced through private sector investments.