The European Bank for Reconstruction and Development (EBRD) is committed to helping Tajikistan improve access to green technologies and climate adaptation for businesses and households.
In partnership with the Green Climate Fund (GCF), the EBRD has launched a $50mn Tajikistan Green Economy Financing Facility II (GEFF Tajikistan II) to promote energy and resource efficiency and support the country's transition to a greener economy. The GEFF Tajikistan II will encourage residential and commercial borrowers to invest in green and innovative solutions that promote sustainable land management and the efficient use of water.
The facility will draw particular attention to the agribusiness sector, which employs nearly half of Tajikistan's workforce and accounts for over 22.5% of the country's gross domestic product.
The GEFF Tajikistan II will earmark up to $13mn, including $11mn under the program, for three domestic financial institutions, Bank Arvand ($4mn), Humo ($5mn), and Imon International ($4mn), which have a combined client base of over 540,000 and operate in even the most remote areas of the country.
The new facility builds on the $25mn 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 over 4,600 sub-projects that generated energy savings, reduced CO2 emissions, and cut water consumption. Supported by donor funding from South Korea, Austria, and the GCF, GEFF Tajikistan II will engage in policy dialogue with the National Bank of Tajikistan to build capacity and manage climate risk at participating banks.
The EBRD's GEFF program is implemented in 29 economies, providing €6.3bn to over 230,000 clients. Since Tajikistan joined the Bank in 1993, the EBRD has invested over €900mn through almost 160 projects in the country.
Earlier, Daryo reported that during the recent United Nations General Assembly, President Emomali Rahmon delivered a detailed speech about climate change. Tajikistan is particularly worried about this issue due to its frequent natural disasters, such as floods, landslides, droughts, and avalanches. These disasters cause loss of life and damage to infrastructure. Tajikistan comprises mostly mountains, making it critical to address climate change. The country supports UN programs and has even started the "Friends of Glaciers" program to mitigate the effects of climate change.
President Rahmon stressed the importance of global cooperation to tackle challenges in Tajikistan and neighboring countries, highlighting successful partnerships. He urged increased international support for Afghanistan, as Tajikistan provides humanitarian aid to its people. Additionally, Emomali Rahmon emphasized the need for stronger action against drug trafficking and terrorism, citing the confiscation of over 10 tons of narcotics at the border in the last two years. Tajikistan is also a leading producer of renewable energy, ranking sixth globally, and is actively involved in the water and climate agenda.
Follow Daryo's official Instagram and Twitter pages to keep current on world news.
Comments (0)