The European Bank for Reconstruction and Development (EBRD) and Jordan’s Microfund for Women (MFW) have signed a US$ 2 million Green Economy Financing Facility (GEFF), including US$ 0.5 million of co-financing from the Green Climate Fund (GCF).
The GEFF funds will be on-lent to micro, small and medium-sized enterprises (MSMEs) in Jordan and will support the expansion of green lending to local businesses.
The facility is supported by the European Union (EU) under its Initiative for Financial Inclusion. It will also benefit from a €0.225 million grant available to the GEFF and provided by the EU via its Neighbourhood Investment Platform, for incentives to accelerate the adoption of climate adaptation and mitigation technologies and services by local MSMEs and households.
This partnership marks the first financing under the GEFF in Jordan and the first package offered to a microfinance institution (MFI) in the EBRD’s wider southern and eastern Mediterranean (SEMED) region under the GCF-GEFF regional framework.
Under this facility, MFW will also benefit from a comprehensive technical assistance (TC) package funded by EBRD, EU and GCF. The TC package will include an assessment of the optimal technology for better integrating climate change practices into the targeted MSMEs and households.
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