ArmInfo.Armenia's private sector will benefit from new green technology financing thanks to the funding from the European Bank for Reconstruction and Development (EBRD) and a concessional finance from the Green Climate Fund (GCF), provided to HSBC Bank Armenia under the EBRD's Green Economy Financing Facility (GEFF).
The loan is expected to facilitate the country's transition to a more sustainable, low-carbon, and climate- resilient economy. This is noted in the message of HSBC Bank Armenia, which does not indicate the size of the loan, but according to the information available to ArmInfo, in all likelihood, we are talking about the amount of $4 million announced in October 2022, in particular, $3 million was planned from the EBRD and $1 million from the GCF.
According to the source, the financing will be used for on-lending to local enterprises for investments in climate change mitigation and adaptation technologies and services. Eligible projects include investments in technologies such as thermal insulation, photovoltaic solar panels, geothermal heat pumps and water efficient irrigation systems.
The GEFF includes a comprehensive technical advisory package, co-financed by the GCF, which helps originate and verify green investment opportunities as well as developing the capacity of participating financial institutions to ensure that green finance become an integrated and permanent aspect of financial institutions' daily business practices.
Companies interested in securing a loan for green technologies may also benefit from investment incentives funded by the Climate Investment Fund (CIF). Businesses can identify typical green technologies available in Armenia through the GEFF Technology Selector.
George Akhalkatsi, EBRD's Head in Armenia said: "Improving access to green finance is one of our key priorities in Armenia. HSBC's solid client base fosters an outreach to private sector players in Yerevan and in Armenia's regions. We are committed to addressing the finance gap for climate mitigation and adaptation, and supporting local businesses in their journey to reduce their energy consumption, making them greener and thus more competitive.
Martin Martirosyan, Head of Wholesale Banking of HSBC Armenia said: "HSBC is playing a leading role in the transition to a net zero global economy. In this pathway we emphasise our commitment to supporting our clients, who are taking an active role in this transition. The biggest impact HSBC Armenia can make in this commitment is providing finance to its corporate customers for investments towards sustainable projects, which will accelerate their transition to lower carbon emissions. We also open up a world of opportunity for our customers through international partnerships aimed at contributing to a sustainable economy. One of the best examples of this approach is our collaboration with EBRD, beginning of which dates back to 2010." -sh- The GEFF programme contributes towards building a green economy in Armenia by supporting the expansion of green finance in accordance with the EBRD Green Economy Transition (GET) approach. The EBRD is a leading institutional investor in Armenia. It has invested more than ?2 billion across 200 projects in Armenia, supporting private sector development and transition to a sustainable, green economy. Since 2006, the EBRD has committed over ?49 billion to projects furthering the transition to the green economy across its regions of operations.
