Baku, Azerbaijan, Dec. 15
By Nigar Guliyeva – Trend:
Tajikistan’s First MicroFinance Bank has become the latest financial institution in the country to join the EBRD’s Climate Resilience Financing Facility (CLIMADAPT), a programme designed to promote the private sector’s resilience to the effects of climate change.
The EBRD reported that loan to the FMFB in Tajik somoni – worth $ 1 million equivalent – will be co-funded in equal installments by the EBRD and the Climate Investment Fund’s Pilot Programme for Climate Resilience (PPCR). The funding will be used to finance investments in climate resilience technologies in the commercial and residential sectors.
The FMFB will benefit from technical assistance focused on the adoption of climate resilience technologies in the country. The assistance is provided by the UK government through the Department for International Development (DFID) and by the EBRD Early Transition Countries Fund. The Early Transition Countries Initiative, launched in 2004, aims to stimulate economic activity in the Bank's countries which still face the most significant transition challenges.
Since the launch of the CLIMADAPT programme by the EBRD in December 2015, the Bank has provided credit lines to Bank Eskhata and microfinance institutions IMON, Humo and Arvand. The FMFB is the latest financial institution to join the programme.
CLIMADAPT follows the model of the EBRD’s Green Economy Financing Facility (GEFF) that operates through a network of more than 130 local financial institutions across 24 countries supported by almost €4 billion of EBRD finance for 120,000 clients. These projects have led to annual CO2 emission reductions of over almost 7 million tonnes.
The $ 1.2 billion PPCR is a funding window of the Climate Investment Funds (CIF) for climate change adaptation and resilience building. The $ 8.3 billion CIF is providing 72 developing and middle-income countries with urgently needed resources to manage the challenges of climate change and reduce their greenhouse gas emissions.
To date, the EBRD has invested over €608 million ($ 700 million) in various sectors of Tajikistan’s economy.