EBRD and GCF support green investments in Armenia

• Inecobank to receive US$ 15 million under EBRD’s Green Economy Financing Facility
• Loan will support small businesses and corporates investing in green technologies
• Project is jointly financed by the EBRD and the Green Climate Fund

Businesses in Armenia will have more opportunities to invest in green technologies thanks to a US$ 15 million (€13.3 million) loan that the European Bank for Reconstruction and Development (EBRD) and the Green Climate Fund (GCF) are providing to Inecobank for on-lending to corporates and small and medium-sized enterprises (SMEs) for green investments.

The EBRD will provide US$ 11.25 million (€10 million) and the GCF will co-finance with US$ 3.75 million (€3.3 million). The GCF is the world’s largest international climate fund. It was created in 2010 under the United Nations Framework Convention on Climate Change and supports low-emission and climate-resilient programmes in developing countries.

The loan agreement was signed today by the EBRD’s Managing Director for Financial Institutions, Francis Malige, and Inecobank’s CEO Hayk Voskanyan, at the EBRD’s 2025 Annual Meeting and Business Forum in London. This will be the fourth transaction under the EBRD’s Green Economy Financing Facility (GEFF) between the EBRD and Inecobank.

GEFF is a framework designed to support businesses in their green transition and in investing in climate-adaptation and mitigation technologies. These technologies also help businesses to enhance their productivity and reduce costs.

The GEFF will contribute towards building a greener economy in Armenia by supporting the expansion of green finance in accordance with the EBRD’s Green Economy Transition (GET) approach. Possible investments include technologies that boost the sustainable use of energy and water resources such as thermal insulation, photovoltaic solar panels, geothermal heat pumps, electric vehicles, electric-vehicle-charging infrastructure and water-efficient irrigation systems.

Companies interested in securing a loan for green technologies can also benefit from investment incentives funded by the Climate Investment Funds.

Since the start of its operations in Armenia in 1992, the EBRD has invested €2.5 billion in 224 projects in the country’s financial, corporate, infrastructure and energy sectors, with 84 per cent of those investments in the private sector.

The EBRD is a multilateral bank that promotes the development of the private sector and entrepreneurial initiative in 36 economies across three continents. The Bank is owned by 75 countries as well as the EU and the EIB. EBRD investments are aimed at making the economies in its regions․