This document discusses Green Economy Financing Facilities (GEFFs) provided by the European Bank for Reconstruction and Development (EBRD). The EBRD provides credit lines to partner financial institutions to on-lend for local green projects, along with technical assistance. The goal is to transition markets to a green economy by promoting higher performance technologies. Key aspects of GEFFs include eligibility criteria, technical support, and overcoming barriers to the adoption of green technologies. The EBRD has over 10 years of experience implementing over 120 GEFF programs that have financed over €4 billion in projects reducing CO2 emissions.

1. Green Economy Financing Facilities
June 2017

2. 2
Russian
Federation
Kazakhstan
Mongolia
—Kyrgyz Republic
—Tajikistan
—Moldova
—Jordan
Azerbaijan
—Morocco
Belarus
Ukraine
Romania
Serbia
—Kosovo Georgia—
Armenia—
Tunisia—
Croatia
—Bosnia & H.—
Montenegro—
Albania—
Macedonia FYR
—Turkmenistan
—Bulgaria
Estonia—
Latvia—
Lithuania—
Poland
Slovenia—
Slovakia —
Hungary —
Uzbekistan
Egypt—
Greece
Cyprus
Turkey
ABOUT THE EBRD
WHERE WE INVEST

3. ABOUT THE EBRD
WORKING WITH COMMERCIAL INVESTORS
3
• EBRD does not compete with commercial investors.
• EBRD does not lend or invest when commercial banks or private investors can do
it alone.
• EBRD invites other banks to participate in its operations (syndication, co-
financing).
• EBRD cooperates with other investors (supporting strategic equity investors).
• EBRD leads the market with innovative products and longer tenors.
• EBRD investment of €1 “mobilises” another €3 for the project
• EBRD employs donor grant funds to blend with its projects. Donor funds and the
Bank’s own resources are used to fund technical assistance for project
preparation, risk-sharing, incentive payments, etc., where such assistance is
required.
• EBRD provides assistance in structuring and executing investments with
significant energy and resources efficiency gains as well as reduction in emissions
of greenhouse gases.

4. ABOUT THE EBRD
PRODUCT FLEXIBILITY TAILORED TO PROJECT NEEDS
4
Typical size
Term
Approach
Currency
Applications
Structures
5-7 years
(up to 10-15 years in case of
infrastructure investments)
€10mln +
(less in less advanced
countries)
Finance up to 35% of the
project (60% with syndication)
Major foreign currencies as well as local currency
• Greenfield/Brownfield, JVs,
• Capex for expansion/modernization, including resource
efficiency improvements
• Ownership change: acquisition, consolidation, privatisation
• PPPs, etc.
Typically from 3-7 years
€5-7mln +
(less in less advanced
countries)
Typically €50 ths – €50mln
1.5-2 (up to 3) years
• Issues to international banks
• Takes the risk of transactions of
the banks in the EBRD’s
countries of operations
Mainly through
Trade Facilitation Programme
• Senior, subordinated or
convertible,
• Project finance
• Floating or fixed rates
• Portage equity finance
• Risk equity
• Import/export operations
• Pure guarantees, cash
advance trade finance
Minority stake
Debt Equity Guarantees
Exact terms depend on specific needs and market conditions

5. GET IMPLEMENTATION OVERVIEW
STRATEGIC DEVELOPMENT
5
The EBRD has adopted a sequence of cross-
sectorial strategies to mainstream green financing
across operations and increase the Bank’s share
of green finance.

6. 6
Offering audits to the Bank’s
clients who have resource
efficiency potential, to identify
and prioritise resource
efficiency investments based
on the financial return from
input cost savings.
RESOURCE
EFFICIENCY AUDITS
Extending credit lines to
partner banks for on-lending to
local projects, together with
dedicated technical assistance
teams who help identify and
assess green investment
opportunities, train up banks’
staff and develop marketing
activities.
GREEN ECONOMY
FINANCING
FACILITIES
Identifying clients with potential
to invest in higher resource
efficiency technologies in early
transition markets and
supporting them with partial
investment grants that help
overcome first-mover risks and
affordability barriers.
TECHNOLOGY
TRANSFER
SUPPORT
Sourcing and structuring
dedicated resources from
international providers of
climate finance for blended
financing operations for terms
appropriately matching the risk
and duration profiles of green
projects.
BLENDING OF
CLIMATE FUNDS
Supporting businesses and
utilities which are most
exposed to future climate
change impacts to identify risks
and integrate adaptation
measures in investment
programmes.
CLIMATE
VULNERABILITY
ASSESSMENTS
Working with governments and
authorities to environmental
market failures, strengthen the
institutional and regulatory
context and create optimum
conditions for green
investments to take place.
POLICY DIALOGUE
MAINSTREAMING GREEN FINANCING
BUSINESS DEVELOPMENT TOOLS

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Targeted activities:
• Energy and resource
audits to identify green
investments
• Integrated technical,
financial and marketing
teams to support client
banks in developing
sustainable energy
lending
• Assessments of risks
related to climate
vulnerabilities
• Transition gaps and
market scoping studies
POLICY
DIALOGUE
PROJECTS &
INVESTMENTS
TECHNICAL
ASSISTANC
E
Tailored financing instruments
• Direct financing
• Financing via intermediaries (e.g. via
local banks)
• Investment grant support for climate
technology transfer
• Blended concessional finance so as to
overcome affordability and risk
perceptions
Working with governments
• To address sustainability and
environmental market failures
• To strengthen the institutional
and regulatory context and create
optimum conditions for green
investments to take place
MAINSTREAMING GREEN FINANCING
THE BUSINESS MODEL

8. 8
Facility Consultant Financial institution
EBRD
Client
Client outreach and
verification support
Credit line with
eligibility criteria
Fresh commercial
finance opportunities
Project development
and optimisation tools
Guidance and quality
assurance
management
The goal of the GEFF model is to transpose the EBRD Green Economy
Transition approach into the operations of local financial institutions and
their clients.
The adoption of higher performance technologies, services and practices
ultimately transitions the market to a green economy.
INNOVATION: GEFF
EBRD GREEN FINANCE EXPERIENCE

9. INNOVATION: GEFF
INVESTMENT AREAS
3 July, 2017 9
Municipal sector:
• Municipalities and
municipal companies
• Municipal service
providers (including
ESCOs)
Industrial and
commercial sector:
• SME/Corporate borrowers
• Vendors and suppliers of
equipment
Agriculture,
forestry and
fishing
Food
processing
Commercial
sector
Manufacturing
Multi-family
residential
buildings
Residential sector:
• Individuals
• SME/Corporates in the
residential sector
Individual
households
Public buildingsPublic transport,
district heating,
water supply,
waste and
waste water
treatment

10. INNOVATION: GEFF
GEFF BUSINESS PROPOSITION
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Through GEFFs, financial institutions gain the ability to:
• access a knowledge-base of high performance solutions that result in
clear environmental benefits beyond business-as-usual
• enhance client competitiveness by focusing on improving the quality and
capacity of their activities
• originate new investment opportunities that are a business priority for
clients
• attract / retain clients that want to increase their competitive advantage
• reduce project risk via technical due diligence and verification services
• use EBRD GEFF programmatic know-how to reduce upfront costs of
investment in development of green financing activity.
EBRD GEFFs de-risk the introduction of green financing products

11. INNOVATION: GEFF
ENABLING ENVIRONMENT
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INCUMBENT
TECHNOLOGY
ALTERNATIVE
TECHNOLOGY
OperatingCosts
Reduce height
of barrier
• Awareness of alternative
• Awareness of benefits
• Access to finance
• Administrative burden
• Technical risk
• Implementation risk
Potential
costreduction
Time
Market barriers (e.g. early-mover costs, entrenched behaviour and
information asymmetries), may increase transaction costs affecting the rate
of adoption of high performance technologies.
Access to broad knowledge base is often the greatest transaction cost to
making an informed investment decision.

12. INNOVATION: GEFF
EBRD GEFF PERFORMANCE CRITERIA
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The technical eligibility criteria of EBRD GEFFs are ambitious (visibly
performing beyond current market practice) to positively influence the uptake
of high performance technologies. The level of ambition needs to be market
appropriate to avoid promoting a market niche that is prohibitively expensive.
Distribution
PerformanceSupport
programme for
high performance
technologies
Prohibitively
expensive
technologies
Market
transformation
Technologies
below reference
baseline
Time

13. INNOVATION: GEFF
GEFF CHALLENGES
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Entrenched behaviour restricts uptake and favours smaller upfront
investment cost typically associated with lower performance technologies.
The EBRD GEFF model seeks to change this behaviour by:
• increasing awareness of multiple benefits of higher performance
technologies
• establishing minimum performance criteria so easier to identify and select
higher performance technologies
• demonstrating cost-effectiveness of investing in green economy solutions
for process modernisation, equipment upgrades and building
refurbishment
• illustrating the business case for using commercial sources of finance for
solutions otherwise constrained by affordability
• partnering with local financial institutions to instil competition and target a
far greater number of clients than the EBRD could influence directly.

14. INNOVATION: GEFF
EBRD GREEN FINANCE EXPERIENCE
3 July, 2017
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More than
120
financial institutions
participated
Around
€4 billion
of EBRD finance
REDUCED
6 million
tonnes of CO2 emissions per
year
Know-how in
25
countries across Central and
eastern Europe, Central Asia
and the Caucasus
Over
10 years
Of experience and know-
hows in green banking
Over
112,000
clients of partner banks
benefited from loans and
technical assistance

15. Thank you!
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Jan-Willem van de Ven
Associate Director / Head of
Carbon Market Development
Energy Efficiency & Climate
Change
Email: millert@ebrd.com