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In a boost for the green transition in the Middle East and North Africa, a joint guarantee agreement worth €300 million to facilitate the green transformation of urban areas and support the development of green hydrogen market in the Middle East and North Africa has been signed.
The agreement was signed by the European Commission, Kreditanstalt für Wiederaufbau (KfW) and DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH. The guarantee is funded by the European Fund for Sustainable Development Plus (EFSD+).
The guarantee will enhance KfW's and DEG`s capacity to foster sustainable urban development and advance innovative energy solutions. This includes projects to improve energy efficiency, promote renewable energy sources, and enhance the overall resilience of urban infrastructure. It will also promote investments in green hydrogen production, storage and distribution.
According to the statement, this initiative addressed important needs in the Middle East and North Africa and aims to deliver on EU's strategic priorities, including the Global Gateway and the European Green Deal.
"We are excited to collaborate with the European Union on this transformative initiative," said Christiane Laibach, member of Executive Board of KfW Group. "This agreement not only reinforces our commitment to sustainable urban development but also aligns with the EU's strategic priorities, positioning green hydrogen as a vital element in the region's energy landscape."
Stefano Sannino, Director-General at the European Commission’s Directorate-General for the Middle East, North Africa and the Gulf (DG MENA) stressed: “We are delighted to embark in a very promising initiative with our partner KfW, addressing such a critical topic for the benefit of urban centres in the Middle East and North Africa. Green energy investments not only contribute to climate change mitigation, but also improve the quality of life of their citizens. This initiative will also tap into the enormous potential of green hydrogen in the region and generate economic growth and jobs, in alignment with our policy priorities.”
The European Fund for Sustainable Development Plus (EFSD+) was established in June 2021 to support public and private sustainable investment in EU’s partner countries, and as a key tool of EU’s Global Gateway initiative. EFSD+ makes available grants and guarantees for investment projects through International Financial Institutions (IFIs) and has €39.8 billion in guarantee capacity globally for the period 2021 to 2027.
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