Finance

Green finance: the EBRD formalizes its “new GEFF II line”

The armed wing of the European Union in terms of financing officially presented, yesterday, Tuesday, March 29, in Casablanca, the GEFF II, its third line of green financing in Morocco. With an expandable budget of 1.6 billion euros, thanks to the support of the Green Climate Fund and the EU, the GEFF II provides Moroccan companies with additional financing for their investments in the ‘durable energy.

The European Bank for Reconstruction and Development (EBRD) has once again shown that it is determined to support Morocco in financing its energy transition over the long term.

Indeed, after the MORSEFF (Morocco Sustainable Energy Financing Facility), which was a resounding success when it closed in 2019 (an envelope of approximately 1.2 billion DH which made it possible to support 257 projects, in the of 5 years, with a reduction in the energy bills of the beneficiaries by an average of 41%) and the Green Value Chain, a program of 90 million euros (nearly one billion DH), still in the process of placement, the arm of the European Union in terms of financing officially presented, yesterday, Tuesday, March 29, in Casablanca, the GEFF II (Green Economy Financing Facility), its third line of green financing in Morocco.

A budget of 1.6 billion euros over three years…
With an expandable budget of 1.6 billion euros, thanks to the support of the Green Climate Fund and the EU, the GEFF II provides Moroccan companies with additional financing for their investments in the sustainable energy, water conservation, waste reduction, green technologies and climate change adaptation.

The program facilitates access to financing for green projects through a package comprising financing of up to 5 million euros (approximately 55 million DH) per investment project, a subsidy of 10% of eligible financing and a free technical assistance provided by EBRD experts. It finances investments in a wide range of green projects that improve the competitiveness of Moroccan companies.

Eligible projects fall under energy efficiency, renewable energy, green buildings, water savings, sustainable land management, material and resource efficiency, and circular economy. Eligible customers are of three types. Any company or entrepreneur, regardless of their status, can access GEFF funding, if they undertake an eligible project in their own name.

Specialized companies, such as Escos (energy service companies), whose skills include the assessment of energy efficiency potential, as well as the identification, financing, implementation and monitoring of the work necessary to carry out energy savings are also allowed.

This without forgetting the suppliers of green technologies, namely companies that sell energy services, that provide maintenance, operation, installation, construction, renovation or development of similar projects or services.

…Which will certainly be revised upwards next May
These companies must be under Moroccan law and belong to the private sector (ie its private shareholders must be the majority with more than 50% of the capital). The criteria of size and number of employees are not taken into consideration. Who should I contact to benefit from the financing of the GEFF II line? To local partner banks of the EBRD.

To date, five of them have already signed with the EBRD to place the GEFF II line. These include Bank of Africa, Société Générale, BMCI, CIH Bank, Crédit du Maroc. Each of these Moroccan banking institutions has been allocated an amount of 25 million euros (about 275 million DH), which it must invest over a maximum period of three years.

According to Ahmed Benyahya, Executive Director in charge of foreign financial institutions and international cooperation at Bank Of Africa, “customer enthusiasm has been so strong that BOA has already placed its GEFF II line”.

According to a source close to the EBRD, the institution should soon receive an extension. The BCP, which has not yet finished placing the Green Value Chain, would also be one of the GEFF II partners. “In any case, major announcements will be made on May 11 and 12 in Marrakech, during the EBRD’s annual meeting.”

The objectives of GEFF II

The overarching objective of GEFF II is to finance investments in the green economy for climate change mitigation and adaptation by private sector companies in Morocco. These investments should lead to a reduction of 83,200 tonnes/year of CO2 emissions, energy savings through energy efficiency of 163 GWh/year and the creation of 30 MW of electricity self-production via installations of renewable energy production.

These various projects should contribute to Morocco’s achievement of its climate change mitigation and adaptation commitments and help Moroccan companies of all sizes to achieve their competitiveness and decarbonization objectives simultaneously.

Aziz Diouf / ECO Inspirations

About the author

on100dayloans

Leave a Comment