Through Sustainable Energy Financing Facilities (SEFFs), the European Bank for Reconstruction and Development (EBRD) extends credit lines to local financial institutions which on-lend the funds to their clients, including small and medium-sized businesses, corporate and residential borrowers, and renewable energy project developers.
Financing under the SEFFs is provided for sustainable energy projects in:
- energy efficiency; and
- small-scale renewable energy.
In addition to financing, each SEFF establishes a Project Implementation Team, comprised of local and international experts who provide support to participating local financial institutions and their clients. Undertaken activities include: training staff in promoting the new financial product and how to recognise technically eligible projects, marketing of the facility, providing technical advice and studies, and supporting the creation of standards for environmental due diligence.
These experts may also support borrowers in identifying energy saving opportunities, developing financing applications, enhancing project design, and advising on high performance technologies.
SEFF financing for businesses supports the purchase and installation of equipment, systems or processes. Supported projects may be from virtually all sectors, ranging from agribusiness, food processing, and manufacturing to industry, construction and services.
Residential loans most often support improvements on the building envelope. Groups that have benefited from SEFF loans include individual owners, groups of home owners and multi-apartment associations.
Where necessary, the EBRD is working closely with donors to provide not just financing for the technical support, but also investment support to overcome affordability constraints and address cost and risk barriers.
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