EU strengthens long term climate investments in MENA region
The first investment announced at the COP23 for the Luxembourg – European Investment Bank (EIB) Climate Finance Platform (LCFP). An EUR 5 million investment will support energy efficiency and renewable energy development in the Middle East and North Africa (MENA) region. The investment will channel funds through the Green for Growth Fund (GGF), in order to leverage private funding, and thereby increase the anticipated impact in the region. Initially, three projects will be financed that would otherwise struggle to attract private investment, especially climate adaptation projects in developing countries. The objective is to achieve annual primary energy savings of 125,000 MWh and CO2 emission reductions of 35,000 metric tons.
Climate action is a key priority for EIB, the European Union’s long term lending institution. Speaking at COP23, Christopher Knowles, nominated to the GGF Board by EIB and serving as its Chairman, said: “The EIB has played a key role in the development of the GGF, and remains one of the fund’s leading partners. We are very pleased that the Luxembourg-EIB Climate Finance Platform is supporting the GGF in renewable energy and energy efficiency development in the MENA region.” In 2016, EIB provided finance of €1.6 billion in the region, of which 27% went to climate action projects. Within the region, a furher dedicated instrument provides grants to prepare climate action investment projects, which could subsequently benefit from EIB financing. Under the CAMENA climate action envelope, projects covering a wide range of climate-relevant sectors are eligible for support in Algeria, Egypt, Gaza/West Bank, Israel, Jordan, Lebanon, Morocco and Tunisia.
The EIB is the largest multilateral provider of climate finance worldwide. In 2016, it provided over €19.5 billion to help mitigate climate change and adapt to its impact. Jesper Persson, head of Trust Funds and Blending at the EIB, recently told Business Today that “The objective of the bank’s operations in the Neighbourhood countries, where we operate under the European Union’s External Lending Mandate 2014-2020, is to support the economic growth of the region and improve their economic resilience by investing in the socioeconomic infrastructure and supporting private sector development.”
Resources: Southern Neighbourhood & FEMIP Trust Fund Annual Report | EIB Investment Report 2017/2018: From recovery to sustainable growth |Exemple of CAMENA projects in the MENA region | As the MENA Region Heats Up, UN Climate Change Talks are Under Pressure