$1bn programme targets high emission industrial sectors

Smoke stacks at sunset

EBRD and CEF launch low-carbon adoption fund across seven countries.

The Green Climate Fund (GCF) and the European Bank for Reconstruction and Development (EBRD) have launched a $1.01bn programme targeted specifically at reducing emissions in the industrial, agribusiness and mining sectors.

The sectors being targeted can face significant barriers to low-carbon technology adoption because of a lack of suitable finance mechanisms needed to help unlock climate-friendly investment. Companies also face relatively higher costs as early adopters, adding to the barriers.

With carbon neutrality a major challenge for these industries, it becomes a major challenge for countries where they play a more significant part in the economy. To address this, the new fund will support projects that help to unlock potential climate benefits across carbon-intensive sectors in Armenia, Jordan, Kazakhstan, Morocco, Serbia, Tunisia and Uzbekistan.

Participating companies will be helped to formulate a low-carbon pathway with a concrete action plan of realistic investments. This practical approach is expected to cut emissions by over 17m tCO2 over a 20-year asset lifetime.

EBRD president Renaud-Basso said: “Companies face a range of challenges related to identifying, prioritising and implementing low-carbon projects, and support from the EBRD and the GCF will be crucial.”

GCF executive director Yannick Glemarec added: “This programme covers seven countries and serves as a model in paring back emissions in hard-to-abate industries. It will facilitate technology transfer and place climate change at the centre of corporate strategy.”

The new programme combines $252.5m of concessional finance from the GCF with $757.5m from the EBRD and other co-financiers. There will also be around $7m for technical assistance and policy dialogue.