EBRD and Green Climate Fund boost Green Initiatives in Tajikistan with $50 Million financing

The European Bank for Reconstruction and Development (EBRD) is reaffirming its commitment to addressing climate change challenges in Tajikistan. In collaboration with the Green Climate Fund (GCF), they have launched the Tajikistan Green Economy Financing Facility II (GEFF Tajikistan II), which will provide $50 million in funding. This initiative aims to promote greater energy and resource efficiency, facilitating the transition to a greener economy in Tajikistan.

GEFF Tajikistan II will encourage both residential and commercial borrowers to invest in environmentally-friendly and innovative solutions. These solutions, accessible through the program’s website, will focus on sustainable land management and efficient water use. Particular attention will be given to Tajikistan’s agribusiness sector, a significant contributor to the country’s GDP and employment.

Approximately $13 million of the funding, including $11 million from GEFF Tajikistan II, will be allocated to three domestic financial institutions: Bank Arvand, Humo, and Imon International. These institutions serve a wide client base, even in remote regions, making green financing accessible to small borrowers across the country.

This initiative builds on the success of the previous Green Economy Financing Facility I (GEFF Tajikistan I), which was operational from 2019 to 2023. GEFF Tajikistan I, supported by the European Union, contributed to substantial energy savings, reduced CO2 emissions, and responsible water consumption.

GEFF Tajikistan II is backed by donor funding from South Korea, Austria, and the GCF. It will also facilitate policy dialogues with the National Bank of Tajikistan to enhance capacity and climate risk management at participating banks.

The EBRD’s broader GEFF program, initiated in 2006, operates in 29 economies and has provided €6.3 billion to over 230,000 clients. This initiative comes as Tajikistan celebrates 30 years since joining the EBRD, with the bank having invested over €900 million in nearly 160 projects in the country.