EU External Investment Plan

Morocco Green Economy Financing Facility (GEFF)

The European Bank for Reconstruction and Development, with support from the EU, launched the Morocco Sustainable Energy Financing Facility (MorSEFF) in 2015. This programme provided a total of EUR 110 million to finance sustainable energy projects in Morocco. The Morocco GEFF Project will build the outcomes of MorSEFF and will allow a wider number of Moroccan banks to benefit from funding and capacity building as it will cast a wider net and cover not only climate change mitigation but also climate change resilience and resource efficiency. 

The Green Economy Financing Facility (GEFF) will systematically address market barriers and entrenched behaviours that are hindering the uptake of green technologies and solutions, thereby helping to create a green, climate-resilient and competitive economy in Morocco. Specifically, the project aims to scale up green economy investment by providing Moroccan businesses with access to green finance from local financial institutions through proactive outreach and dedicated financial product offerings. 

The GEFF project will achieve its objectives through the provision of access to finance, an investment grant and technical assistance. With EUR 150 million in credit lines, the project will finance a large number of small- to medium-sized green investment projects, and generate competition in the local financial sector. The investment grant component will encourage Moroccan businesses to adopt green technologies which, despite their benefits, are not currently the businesses’ first choice due to higher upfront costs and higher perceived risk. 

The key focus of the technical assistance is to address specific behaviours and gaps in local capacity and to support participating financial institutions in developing a pipeline and portfolio of eligible sub-projects. The project will also raise awareness of green technologies with high market potential by communicating the business and social case for these investments through local NGOs, press, social media, marketing events and workshops. 

The EU funding will be leveraged at least eight-fold with co-financing led by the EBRD. The blended financing made available thanks to the EU contribution will play a crucial role in unlocking resources from Morocco’s private sector, which would not otherwise be prioritised for green economy investment.

Key Information
Location
  • Morocco
Region
  • Southern Neighbourhood
Year
2018
Total budget
€197.1 million
EU contribution
€21.1 million
Sector
  • Micro-, small and medium-sized enterprises (MSMEs)
Lead finance institution
European Bank for Reconstruction and Development (EBRD)