Individuals, small and medium-sized enterprises and corporates that are ready to invest in renewable energy and efficiency of energy resources will have access to a €20 million lending program through the Green Economy Financing Facility (GEFF). Experts will provide know-how and raise awareness about climate change mitigation and adaptation technologies among clients and will offer project appraisal support and guide sub-borrowers to optimal technology choices. Activities that aim to enhance women’s and men’s equal opportunities to access finance for green technologies will also be supported. The program is developed by the European Bank for Reconstruction and Development (EBRD) with support from the Green Climate Fund (GCF) and the Ministry of Treasury of Turkey, IPN reports.
In the program launch, economic expert Andrei Crigan said that Moldova during the past few years suffered because of the elements, including drought and hail. The economic losses are estimated at US$120 million a year. The effects of the weather conditions can be counteracted by adjustment to them or by their mitigation. Investments for reducing emissions related to human activities are needed for both of them. Estimates show Moldova needs approximately US$ 5 billion during the next ten years to reduce the greenhouse effect. Knowledge is also needed to choose the best and most efficient technologies when the investment decision is taken.
The Head of the EBRD Office in Moldova Angela Sax said the program envisions the adaptation to climate change in 26 countries, which is important in the context of the new EBRD’s five-year strategy centering on green investments that was adopted last year. The EBRD helps Moldova to consolidate its capacity to respond to natural disasters, offering access to finance to a large number of beneficiaries, primarily in rural areas and especially to women.
Lilia Palii, secretary general at the Ministry of Economy and Infrastructure, noted that Moldova faced drought and floods and saw that climate change can create obstacles, but also opportunities for transforming the economy into a green one. Moldova banks on nonrenewable energy sources even if it is rich in renewable sources. The impact is felt. 70% of the volume of electricity is bought. The objectives of GEFF Moldova are fully in line with the objectives of the Government of Moldova. Among the common priorities are the improvement of the agricultural sector by sustainable soil management practices, efficient irrigation systems and efficient value chains, and modernization of the industrial system.
Vitalie Lungu, vice president of the Administration Board of MAIB, which takes part in the project, said the GEFF program creates a series of opportunities, including for their bank. MAIB can play the role of a leader in the transition to sustainable green economy in Moldova. The partnership with the EBRD is an excellent possibility for offering the bank’s clients access to finance and supporting the aspirations of suitable investments for individual clients and enterprises, including those from agriculture. They expect a new experience for employees and opportunities for new clients.
