EBRD, EU, GCF extend funding for SMEs in Armenia

Armenia’s private sector is set to benefit from new resources for green financing thanks to an US$ 8 million financial package put together by the European Bank for Reconstruction and Development (EBRD) in cooperation with the European Union (EU) and the Green Climate Fund (GCF). The funds will promote the private sector’s transition to more sustainable, low-carbon and climate-resilient practices.

The package is being provided to ArmswissBank under the EBRD’s Green Economy Financing Facility (GEFF) programme and the EU4Business-EBRD credit line with incentives for on-lending to small and medium-sized enterprises (SMEs) for investments in climate change mitigation and adaptation as well as for upgrading technologies and services to EU standards while promoting the use of green technologies. This is the second project to be signed in Armenia under the EU4Business-EBRD credit line, paving the way for more banking clients to join this new framework.

The EU4Business-EBRD credit line helps local companies improve their standards, upgrade production, improve employee working conditions and boost competitiveness on the local and international markets. At least 70 per cent of each loan will finance investments in green technologies. Borrowers are eligible for incentive grants and technical advice, both funded by the EU under its EU4Business initiative.

The EBRD’s GEFF programme supports businesses and homeowners wishing to invest in green technologies. Eligible projects include thermal insulation, photovoltaic solar panels, geothermal heat pumps and water-efficient irrigation systems. GEFF also includes a comprehensive package of technical advice which helps to identify and verify green investment opportunities. Businesses can find green technologies commonly available in Armenia using the GEFF Technology Selector.

The GCF will support the project with capacity building and implementation while providing incentive grants for eligible green projects.