Energy Efficiency Program II

active

This project provides funds to enable the project sponsor Micro-Small and Medium Enterprise Development Agency (MSMEDA) to grant loans to Egyptian micro and small enterprises (MSMEs) to invest in energy or emission-saving measures. The special feature of this project is the approach of downscaling energy-efficient investments. Attractive financing conditions are intended to give the majority of Egyptian entrepreneurs incentives to invest in saving greenhouse gases, which also makes economic sense in the long term. These can be measures such as the purchase of modern air conditioning units, but also the use of climate-friendly vehicles, i.e. standardized measures, which is more practical for volume business in the MSME sector than individual audits. All investments are reviewed in accordance with the criteria used by the Green for Growth Fund (GGF) before a loan is granted. This may also require the use of an external expert to ensure the set target of at least a 20% reduction in greenhouse gases across the entire portfolio. Due to the novelty of the product, the accompanying measure will strengthen MSMEDA's capacity to establish and further develop its credit and all downstream processes.