New EBRD-EU Green Economy Financing Facility to strengthen sustainable private-sector growth and household energy solutions in the West Bank

New EBRD-EU Green Economy Financing Facility to strengthen sustainable private-sector growth and household energy solutions in the West Bank

(IN BRIEF) The EBRD and EU have launched the Green Economy Financing Facility (GEFF) in the West Bank, providing up to €25.9 million in loans to local financial institutions to support on-lending for small-scale renewable energy and efficiency projects. Backed by €5.2 million in EU-funded investment grants and technical assistance, the initiative will promote green technologies among Palestinian MSMEs and households, addressing high energy costs, climate challenges, and the need for greater financing access. The programme builds on the EBRD’s growing presence in the region, where it has already approved €185.5 million in projects since 2017.

(PRESS RELEASE) LONDON, 16-Sep-2025 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD), in partnership with the European Union (EU), has launched the Green Economy Financing Facility (GEFF) programme in the West Bank, aiming to stimulate private-sector and household investment in renewable energy and resource-efficient technologies.

Through the initiative, the EBRD will provide up to €25.9 million in senior unsecured loans to four local financial institutions over the next seven years. These institutions will offer gender-responsive on-lending to Palestinian micro, small, and medium-sized enterprises (MSMEs) and households. The focus will be on supporting small-scale renewable energy projects alongside water-, energy-, and resource-efficiency solutions that advance the region’s shift to a low-carbon, climate-resilient economy.

MSMEs dominate the Palestinian economy, accounting for more than 95% of businesses in the West Bank and Gaza and contributing over half of GDP. Yet access to finance for sustainable projects remains limited, particularly in green technologies. With the region facing high energy and fuel costs, heavy reliance on imported electricity, and growing climate pressures, the GEFF programme is positioned to provide critical support to businesses and households.

To encourage adoption, the EU is contributing up to €5.2 million in investment grants through its Sustainable Growth4All Programme. These grants will help reduce barriers to green investments while promoting long-term cost savings through efficiency measures.

In addition, EU-funded technical assistance will enhance the capacity of partner financial institutions to identify, appraise, and monitor sustainable projects. This support will also raise awareness of the economic and environmental benefits of adopting green technologies, strengthen MSMEs’ ability to choose appropriate solutions, and integrate a gender perspective across financing and advisory services.

Since beginning operations in the West Bank and Gaza in 2017, the EBRD has approved 36 projects worth a combined €185.5 million. The new GEFF initiative represents a significant step in scaling sustainable finance and enabling businesses and households in the West Bank to embrace environmentally responsible growth.

Media Contact:

Nibal Zgheib
Email: media@ebrd.com

SOURCE: EBRD