TAJIKISTAN: The European Bank for Reconstruction and Development (EBRD) has announced a new commitment of $50 million for the Tajikistan Green Economy Financing Facility II (GEFF Tajikistan II) program. The program, launched in partnership with the Green Climate Fund (GCF), aims to promote higher standards of energy and resource efficiency and support Tajikistan’s transition to a greener economy.
The GEFF Tajikistan II program will encourage residential and commercial borrowers to invest in green and innovative solutions that promote the efficient use of water and the sustainable management of land. The program will pay special attention to the agribusiness sector, which employs almost half of Tajikistan’s workforce and is responsible for more than 22.5% of gross domestic product.
Up to $13 million, including $11 million under GEFF Tajikistan II, will be earmarked for three domestic financial institutions: Bank Arvand, microlenders Humo, and Imon International. The three institutions have a joint base of more than 540,000 clients and are operational even in remote mountainous parts of the country, making them well-placed to bring much-needed green finance to even the smallest borrowers across Tajikistan.
The GEFF Tajikistan II program builds on the success of the $25 million Green Economy Financing Facility I (GEFF Tajikistan I), which was supported by the European Union and operational from 2019 to 2023. GEFF Tajikistan I supported more than 4,600 sub-projects, generating over 24,000 MWh of energy savings, reducing CO2 emissions by 5,195 tonnes, and cutting water consumption by 5.2 million m3.
The new facility is supported by donor funding from South Korea, Austria, and the GCF. It will also support engagement in policy dialogue with the National Bank of Tajikistan to build capacity and manage climate risk at participating banks.
Launched in 2006, the EBRD’s wider GEFF program is now being implemented in 29 economies and has provided EUR 6.3 billion to more than 230,000 clients. The EBRD has invested more than EUR900 million through almost 160 projects in Tajikistan since the country joined the Bank in 1993.