The European Bank for Reconstruction and the Development (EBRD) launched in Tunisia the Program to finance a green economy (PFEV), in partnership with the European Union (EU). Ce The aim of the scheme is to strengthen the competitiveness of the private sector while supporting the ecological transition of the country.

According to the EBRD, “this flagship initiative, the first of genre, launched in Tunisia, will bring 59 million euros (nearly 200.9 million) (dinars) in the form of unsecured senior loans at a maximum number of six local financial institutions so that they in turn grant loans to micro, small and medium-sized enterprises (MSMEs). These funds will involve investments in energy efficiency, energies renewables, climate change adaptation and the circular economy ”.

“This new program also benefits from the support of” Currency Exchange Fund” -Exchange Fund- (TCX), which will provide Tunisian banks: a mechanism for hedging currency risk at a price reduced, with the support of the EU.”

“Over the past thirty years, greenhouse gas emissions greenhouse gas emissions (GHGs) increased in Tunisia, mainly due to a energy-intensive industrial growth. Recognizing the importance of sustainable development, the country updated its contributions determined at the national level in 2021, by setting an ambitious objective of reducing its carbon intensity by 45% by 2030. This new PFEV comes in support of this objective, as it will allow more MSMEs to invest in technologies for mitigating climate change and adapting to its effects, which will greatly facilitate the reduction of energy consumption and GHG emissions. These investments should make it possible to reduce the CO2 emissions of more than 26,296 tons per year.”

“The device will be completed by a program comprehensive technical cooperation from the EBRD and the EU, which will include also, capacity building programs for institutions financial partners, focused on promoting equal access to green financing for women and men. The cooperation component technique also provides for investment incentives financed by the EU, for secondary borrowers who have completed and validated with successful adoption of high-performance technologies.”