The Green Climate Fund (GCF) is taking a major step to reduce industrial emissions in developing countries following the signing on Wednesday of a USD 1 billion partnership agreement with the European Bank for Reconstruction and Development (EBRD).

The agreement lays the groundwork to implement a high-impact programme to curtail industrial greenhouse gas emissions from the corporate sector across seven countries. It marks GCF’s first large-scale investment to promote the use of low-carbon technologies in industry. The heads of GCF and EBRD signed the agreement during a virtual event to mark the occasion.

GCF Executive Director Yannick Glemarec said: “This USD 1 billion initiative demonstrates how GCF’s partnership with EBRD is driving innovation and investment in climate action at scale in developing countries. This programme covers seven countries and serves as a model in paring back emissions in hard-to-abate industries. It will facilitate technology transfer and place climate change at the centre of corporate strategy.”

EBRD President Renaud-Basso said: “We are very happy to strengthen the cooperation with our long-standing partner, the GCF, to achieve sustainable development across our regions. It is a great example of how organisations can work together to address environmental challenges. Companies face a range of challenges related to identifying, prioritising and implementing low-carbon projects, and support from the EBRD and the GCF will be crucial.”

This climate finance programme is designed to scale back greenhouse gases from industries where it has previously been difficult to reduce emissions in Armenia, Jordan, Kazakhstan, Morocco, Serbia, Tunisia and Uzbekistan.

GCF’s investment – USD 5.5 million in grants and USD 252 million in loans – catalyses over USD 750 million in co-financing to support the uptake of low carbon technologies in energy-intensive industries, agribusinesses and the non-fossil fuel mining sector. The programme is expected to reduce emissions by 17.2 M tCO2 during its 20-year lifetime.

GCF’s partnership with EBRD in this initiative is intended to act as a role model in showing how it is possible to boost the commercial viability of low-carbon investments in industry, which currently accounts for about 30 percent of global emissions.