EBRD to launch Green Energy Efficiency Framework with Azerbaijan

The European Bank for Reconstruction and Development (EBRD) will launch a Green Energy Efficiency Framework with Azerbaijan, Mikhail Grechikho, Senior Financial Official at the EBRD, said at the 9th Sustainable Development Goals (SDGs) Dialogue in Baku, Report informs.

Grechikho noted that the framework will be launched early next year in cooperation with the banking sector, Azerbaijani authorities, and the Central Bank of Azerbaijan.

"We will consider it a success when banks view green finance as a normal element of their day-to-day business, whether in the form of working capital financing or capital expenditure loans. This is very high on our agenda. We are currently proposing a dedicated framework to help banks make the investments I have described. It is called the Green Energy Efficiency Framework," he said.

The official noted that the EBRD can share risks with its partners and help reduce them to an acceptable level where they can be managed effectively:

"Finally, we are also incorporating a concessional element. This is not simply an advantage, because there are very clear barriers in this area that need to be addressed. Based on our experience, having a certain share of concessional financing can support the development of this sector. By including this element, these barriers can be overcome. After that, the concessional component can gradually be phased out, allowing private finance and the commercial market to move forward independently."