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Green for Growth Fund attracts fund to promote MENA green energy measures

Chairpersons of the GGF Investment Committee and Technical Assistance Committee visiting the GGF-supported Phoenix subproject at the Benban Solar Park, Egypt. (Image source: EIB)

Climate Action in the Middle East North Africa (CAMENA) invests US$4.42mn in the Green for Growth Fund (GGF) to attract private capital for helping the region fight climate change and together with US$5.52mn European Investment Bank (EIB) investment, the contribution focuses on financing and promoting green energy measures

Created with the support of the UK Department for International Development, CAMENA is managed by the EIB as an initiative to help countries in the Southern Mediterranean fight climate change by funding targeted climate initiatives and vehicles like the GGF.

Lloyd Stevens, director at GGF advisor finance in motion, noted, ?The MENA region is highly susceptible to climate change on account of its water scarcity, high dependence on climate-sensitive agriculture, and concentration of population and economic activity in urban coastal zones. Therefore, we consider it crucial for the GGF to have a positive environmental impact in the region by promoting energy and resource efficiency, and the development of renewable energy sources.?

The EIB is supporting the GGF?s efforts to drive climate action by providing additional funding through the Luxembourg-EIB Climate Finance Platform. The investments will be used to strengthen the GGF?s ?C-shares,? a special risk-absorbing layer that enables the fund to attract private capital ? which is crucial for channelling higher volumes of investment to achieve maximum impact.

The GGF has seen growth in its MENA investment portfolio, which increased by more than 50 per cent in volume in 2018 to cross the US$146.85mn mark. The GGF leverages public and private capital to fund pioneering green energy initiatives such as the Phoenix 50MW sub-project of the Benban Solar Park in Egypt, the largest solar farm in the world.

?We expect that our commitment, which is strengthening the special risk absorbing a layer of the fund, will attract additional finance from the private sector to support transformative green energy projects in the region,? said Barbara Boos, head of the infrastructure funds and climate action division of the EIB.

As a co-initiator of the GGF, EIB has been instrumental in supporting green energy initiatives in the MENA region through their trust funds, added GGF chairman Olaf Zymelka.