EU to help Moldova boost low-carbon economy
The European Bank for Reconstruction and Development (EBRD) and the Green Climate Fund (GCF) will provide a €5 million loan to support new green technology in Moldova.
The loan to Moldova Agroindbank (MAIB) under the EBRD’s Green Economy Financing Facility (GEFF) combines €3.75 million of EBRD finance and €1.25 million of GCF concessional co-finance, the EBRD said on December 22. The financing for MAIB is the first loan to be made available under the GEFF in Moldova and is expected to facilitate the country’s transition to a more sustainable, low-carbon and climate-resilient economy.
According to the EBRD, the loan will be used for on-lending to individuals, small and medium-sized enterprises (SMEs) and corporates for investments in climate change mitigation and adaptation technologies and services, such as thermal insulation for buildings, energy-efficient glazing, LED lighting, heat pumps, photovoltaic generation and energy storage systems, electric vehicles as well as drip irrigation lines, conservation agriculture machinery and rainwater harvesting equipment.
The EBRD, with funds from the GCF and Turkey, will help MAIB with capacity-building and with the implementation and monitoring of the programme. Experts will provide know-how and raise awareness about climate change mitigation and adaptation technologies among private sector clients. In addition, they will offer project appraisal support and guide sub-borrowers to optimal technology choices.
The loan is expected to help Moldova reduce its annual energy consumption by 108,800 GJ per year, the equivalent of annual energy consumption of more than 6,000 Moldovan households and carbon emissions by 9,880 tonnes per year, equivalent to taking more than 5,000 passenger vehicles off the streets, the bank said.
The EBRD will also support activities that aim to enhance women’s and men’s equal opportunities to access finance for green technologies.
MAIB is the largest bank in Moldova and a long-standing partner of the EBRD.
