Tashkent, Uzbekistan (UzDaily.com) -- Small enterprises in Uzbekistan will be able to invest in energy efficiency and renewable energy through access to the pilot mechanism for financing the green economy (GEFF), which was signed today between the European Bank for Reconstruction and Development (EBRD) and Ipak Yuli Bank.

The mechanism will provide loans to small and medium-sized enterprises (SMEs) and corporations for investments in green technologies that reduce greenhouse gas emissions, as well as technologies for adapting to climate change and mitigating its effects.

Ipak Yuli Bank has registered as the first local partner, receiving a EBRD credit line of EUR 4.4 million for lending to private companies. The loans will cover investments in green technologies such as thermal insulation, photovoltaic solar panels, geothermal heat pumps and water-saving irrigation systems. Businesses can identify typical green technologies using the GEFF technology selector.

The official signing ceremony of the loan agreement between the EBRD and Ipak Yuli Bank was attended by various stakeholders, including government officials, international donor and financial institutions, local financial institutions, suppliers and manufacturers of green technologies and businesses.

The EBRD was represented by the head of the Representative Office in Uzbekistan Alkis Vrienios Drakinos, who commented: “Improving access to green finance and developing the financial sector is one of our key priorities in Uzbekistan. We are pleased to work with Ipak Yuli Bank to support small and medium-sized businesses and corporations seeking to become more energy-efficient. ”

GEFF seeks to expand coverage to include more participating financial institutions, supporting the country's transition to a green economy.

To date, the EBRD has invested 1.3 billion euros in the economy of Uzbekistan through 70 projects.