The EBRD has been investing in the SEMED region since September 2012.
FINTECC is working in SEMED countries, to support the implementation of climate technologies.
The SEMED region is highly vulnerable to the risks of climate change. Water scarcity is a significant concern. Water is critical for key sectors of the economy such as energy, agriculture and tourism, as well as for human health.
There is also a significant reliance on climate-sensitive agriculture and a concentration of economic activities in coastal areas.
The region is also very dependent on energy. In fact, according to the International Energy Agency (IEA), energy intensity in Africa, along with the Middle East, increased between 1998 and 2010, which ran counter to global trends in this period.
FINTECC has identified several barriers to successful technology transfer in the SEMED region. These include the high transaction costs associated with implementing climate technologies, caused by low capacity within the technical, legal and financial communities, and by the perceived lack of suitable and affordable energy efficiency technologies.
Information is not communicated effectively, meaning projects are often viewed as having even higher inherent technical and financial risks than is necessarily the case.
There is therefore the clear need for technology deployments that can act as demonstration projects to the relevant sectors.
In some cases there is also a lack of adequate regulatory frameworks, to support and incentivise climate technologies.
Where the technologies are implemented, knowledge is not being effectively shared between sectors. There is therefore a need to improve policies and establish good information-sharing networks.
Having defined the barriers to overcome, we are now working in SEMED in the following ways:
We offer incentive grants to help companies prioritise climate technologies within their investment programmes. These include technologies that achieve energy, water or materials efficiency.
They also include those that increase business resilience to the effects of climate change. Our grants are primarily for climate technologies with low market penetration and good replicability potential within their participating country.
Incentive grants are available as a complement to EBRD financing and can sponsor up to 25 per cent of the cost of the specific technology.
The grants are capped at €400,000 for any one company and are payable after the installation and commissioning of the eligible climate technologies.
FINTECC provides companies in SEMED with the following technical support:
The EBRD’s in-house energy and water efficiency specialists review energy, water and material efficiency potential in client operations and assist in identifying the best way to support them in implementing investment opportunities.
International specialists are available to conduct resource efficiency audits, helping companies to prioritise sustainable resource efficiency investments and understand the technical and financial feasibility of installing climate technologies within their context. Learn more about resource efficiency audits here.
Three priority areas of policy support have been identified for SEMED:
- Preparing or upgrading National Energy Efficiency Action Plans as needed
- Creating energy performance standards and labelling (S&L) schemes
- Developing associated S&L monitoring, verification and enforcement processes
The IEA has produced a Policy Insights paper, with support from the EBRD and with inputs from the Food and Agriculture Organization of the United Nations.
The paper will help policy-makers in Early Transition Countries and SEMED understand the options for enabling climate technology implementation.
View the Policy Insights paper here.