SEMED Regional Sustainable Energy Finance Facility (SEFF) Phase I is a joint action between the EBRD and the KfW, the EIB and the AFD to extend at least EUR 110 million of credit lines to Participating Financial Institutions (PFIs) in Morocco and Jordan to finance energy efficiency and small renewable energy investments in industry, SMEs, agribusiness, commercial services and the residential sector. To be eligible for funding from the Facility, sub-projects need to generate reductions in energy consumption, reductions in CO2 emissions and/or need to use renewable energy.
As a result, the Facility will contribute to climate change mitigation by promoting investments that reduce greenhouse gas emissions, increase the use of renewable energy and support the local production base and research and development in sustainable energy. Investments in energy efficiency and renewable energy measures of EUR 121 million are expected to reduce greenhouse gas emissions by more than 150,000 tonnes of CO2 per year. It is hoped that some 25% of the Facility will be used to finance renewable energy investments (versus 75% for energy efficiency). Thus, the Facility will not only reduce companies' final energy costs but also increase their efficiency and competitiveness and will contribute to job creation.
The EU grant is being used for incentive payments that will help to generate and prioritise financially viable investments by softening market-based financing conditions applied by commercial banks to loans provided to their clients. This will increase affordability for end borrowers. Another aim is to develop technical expertise in the local service industry to ensure sustainability in the identification and preparation of technically and environmentally feasible sustainable energy projects. The success of the Facility will be measured against greenhouse gas reductions (as tCO2/year), energy savings (as MWh/year) and renewable capacity installed capacity (as MW).