EBRD, EU launch green finance facility for Palestinian economy

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EBRD, EU green finance Palestine

Highlights

The EBRD and EU launched the Green Economy Financing Facility to channel funding via local financial institutions for renewable energy and green investments in Palestine.
The programme offers up to 25 per cent EU-funded investment incentives and technical support, with a focus on improving green finance access for women and women-led businesses.
The facility has already enabled projects expected to save 12,656 MWh of energy annually, cut 3,717 tonnes of CO2, and builds on EBRD's €225 million investments in West Bank and Gaza since 2017.

Programme structure and investment support

As reported by EBRD, citing the European Bank for Reconstruction and Development, the Green Economy Financing Facility is designed to channel funding through local partner financial institutions to support eligible green investments across the Palestinian economy.

The programme covers renewable energy, energy and resource efficiency, green buildings, circular economy solutions and waste management. It combines EBRD financing with technical expertise and EU-funded investment incentives of up to 25 per cent for households and businesses undertaking eligible and verified projects.

The facility also aims to improve access to green finance for women and women-led businesses. Dedicated technical assistance and capacity-building support are being provided to participating financial institutions, households and companies throughout the programme.

Environmental targets and EBRD footprint

Backers of the facility expect the programme to generate environmental and operating-cost benefits by accelerating the adoption of higher-performance green technologies. Investments supported under the programme to date are already expected to produce annual savings of 12,656 MWh of primary energy and avoid 3,717 tonnes of carbon dioxide emissions, while also reducing water consumption and waste generation.

The launch adds to the EBRD's activity in the West Bank and Gaza, where it has approved 42 projects worth a total of €225 million since starting operations in 2017. The latest facility is intended to deepen climate-focused financing while supporting competitiveness and resilience in the local economy.

In our earlier article on India’s clean energy investment surge, we noted that capital inflows into energy-transition projects rose 15% to $72 billion, lifting the country to fifth place globally and ahead of France. We also highlighted that this momentum supports long-term infrastructure buildout across power, industrial fuels and transport, reinforcing investor confidence in renewables.

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