The EBRD is preparing 65 million euros in green financing for BCP.
The European Bank for Reconstruction and Development (EBRD) to Provide Up to €65 Million in Green Financing to the Central Bank Popular Group (BCP)
The European Bank for Reconstruction and Development (EBRD) is considering the provision of two green financing operations to the Central Bank Popular Group (BCP), amounting to a total of up to €65 million. These transactions are part of the Green Economy Financing Facility (GEFF).
The proposal is currently in the “exploratory, pending final review” stage, with an anticipated approval date of September 9, 2026.
The proposed framework consists of two unsecured senior loans aimed at financing private investments related to climate change mitigation and adaptation through BCP.
First Loan of €25 Million for Very Small, Small and Medium Enterprises (TPMEs)
The first financing, dubbed GCF GEFF III, could reach €25 million or its equivalent in dirhams. Up to €6.25 million of this amount is expected to be co-financed by the Green Climate Fund (GCF).
This operation will be accompanied by incentive grants and a technical assistance program funded primarily by the European Union, as part of the Decarbonization and Climate Resilience Program (MDCR) in Morocco, as well as by GCF.
GEFF III primarily targets very small, small, and medium-sized enterprises (TPMEs) in Morocco that wish to invest in climate transition-related projects, with a gender-inclusive approach.
Renewable Energy, Energy Efficiency, and Circular Economy
The financing designated for TPMEs will support projects in small-scale renewable energy, energy efficiency, and green buildings.
The framework also covers the circular economy and climate change adaptation, notably through more efficient water usage and sustainable land management, as well as digitalization and the blue economy.
The goal is to enable Moroccan small businesses to invest in lower-carbon solutions that are better suited to the impacts of climate change.
Second Loan of €40 Million for Mid-Sized Enterprises
The second component, named MidGEFF, would involve an amount of up to €40 million, or its equivalent in dirhams.
Up to €3.2 million of this amount is expected to be co-financed by Canada through the multi-donor fund High-Impact Partnership on Climate Action (HIPCA).
This financing will target mid-sized enterprises engaged in larger-scale climate projects. The sectors involved primarily include medium-sized renewable energy, industrial energy efficiency, and green buildings.
The framework will also support private investments in municipal infrastructure as well as climate adaptation projects focusing on wastewater treatment and desalination, alongside investments in the circular economy.
Technical Support for Beneficiaries
In addition to financial resources, both operations include a significant technical assistance component.
For GEFF III, this support will cover project preparation, implementation, verification, and monitoring. It aims to enhance BCP’s capacity in green finance and sustainable technologies.
Incentive grants will also be offered to borrowers to encourage the adoption of low-carbon technologies and services that are resilient to climate change. Training focused on green finance and technologies is also planned.
For MidGEFF, technical assistance will similarly focus on project preparation, monitoring, verification, and capacity building for BCP. This support will be funded by the European Union as part of the MDCR.
A Collaborative Effort Since 2014
The new operation is part of a long-standing relationship between the EBRD and BCP aimed at sustainable finance.
According to the EBRD, the banking group plays a significant role in mobilizing savings and financing the Moroccan economy. It has also developed expertise in green finance and in assisting SMEs seeking to undergo an energy transition.
This cooperation dates back to 2014, with the launch of the first sustainable finance programs conducted with the EBRD, including MorSEFF, followed by the Green Value Chain program, and then GEFF II.
Green Finance to Enhance Business Competitiveness
Through these anticipated new financings, the EBRD aims to strengthen the financial capabilities of Moroccan companies engaged in climate transition.
For BCP, these mechanisms are expected to contribute to the ongoing development of financial offerings targeting investments in energy efficiency, renewable energy, and decarbonization.
This momentum places green finance at the heart of supporting Moroccan businesses, with a dual goal: to reduce their environmental footprint while enhancing their competitiveness and resilience in the face of climate transformations.
