EBRD Escalates Green Finance in Armenia with €2.5 Million Loan

The European Bank for Reconstruction and Development (EBRD) has announced that it is escalating efforts to reinforce energy efficiency in Armenia with the unveiling of a new Green Economy Financing Facility for the country, co-financed by the Green Climate Fund (GCF).

Small and medium-sized enterprises (SMEs) and corporates will advantage from a €2.5 million loan to ArmSwiss Bank, the second bank to join GEFF in Armenia after the effective set-up of a credit line with Ameriabank. Funding will be accessible for investments in green technology, particularly in climate adaptation and alleviation technologies. Possible investments include technologies such as thermal insulation, photovoltaic solar panels, geothermal heat pumps and water efficient irrigation systems. Businesses can recognize typical green technologies accessible in Armenia through the GEFF Technology Selector.

Companies interested in securing a loan for green technologies may also advantage from investment incentives funded by the Climate Investment Funds (CIF). The GEFF includes an inclusive technical advisory package, co-financed by the GCF, which helps to instigate and verify green investment opportunities.

Dmitri Gvindadze, Head of Armenia said, “Developing the financial sector and improving access to green finance is one of our key priorities in Armenia. We are pleased to work with Ameriabank and ArmSwissBank to support both energy efficiency and water resource efficiency investments. Today, we have partnered with the ArmSwissBank which has a strong client base, and so we can better reach out to private sector players both in Yerevan and the regions.”

The GEFF programme will add towards building a green economy in Armenia by supporting the expansion of green finance in agreement with the EBRD Green Economy Transition (GET) approach.

Since the start of its operations in Armenia in 1992, the EBRD has capitalized €1.2 billion in 168 projects in the country’s financial, corporate, infrastructure and energy sectors, with 88 percent of investments in the private sector.