Tunisia—Green Economy Financing Facility (Tunisia GEFF)

Since the 1980s, Tunisia has implemented public policies to promote energy efficiency, develop its renewable energy capacity, and protect the environment. Energy demand initiatives have lowered energy intensity. Yet Tunisia remains a net energy importer, energy demand continues to increase, and solar, wind, and other forms of renewable energy remain under-exploited.

One key constraint is a lack of readily available finance. Small and medium-sized enterprises typically face high interest rates, stringent administrative requirements, and lengthy approval processes for green investments. While targeted credit lines and subsidies for solar systems have begun to fill this gap for photovoltaic installations, government incentives often take too long to materialize.

At the same time, businesses and the public still tend to equate energy efficiency solely with installing renewable technologies, overlooking crucial opportunities associated with promoting more efficient industrial equipment and technologies used in commercial and residential buildings.

Comprehensive financing mechanisms such as the Green Economy Financing Facility (GEFF) model, successful in neighboring Morocco, represent a critical opportunity to address both the financing and awareness barriers. Following a similar model, the Tunisia GEFF project will support up to seven financial institutions in Tunisia—both commercial banks and microfinance institutions—to on-lend up to €60 million for financing of sustainable resource and energy technologies for residential and commercial investments.

Our team works closely with participating financial institutions to generate a portfolio of eligible sub-projects and build financial institutions’ capacity in financing green technologies and promoting modern energy performance and environmental standards—while taking into consideration gender disparities and the importance of financing women-led businesses.

By the end of 2030, GEFF-supported sub-projects will achieve CO2 emission reductions of more than 40,000 tonnes per year (equal to planting more than 1.5 million trees per year) and energy efficiency savings or renewable energy production of more than 400,000 gigajoules per year (enough to power 10,300 homes per year).

Sample Activities

• Build the capacity of partner banks to develop loan products and assess applications for financing efficient energy projects.
• Assist small and medium-sized businesses to identify cost-efficient energy upgrades.
• Implement strategic marketing to promote Tunisia GEFF to banks, businesses, and business associations.
• Work with suppliers of energy-efficient equipment and maintain a mechanism to promote uptake of energy-efficient technology in Tunisia.
• Ensure transfer of skills to financial institutions, local engineers, and businesses to sustain Tunisia’s efficient energy market.