Development Finance Climate Action & Green Transition Skills & Employment

Expanding and streamlining energy efficiency finance for MSMEs with the German-Armenian Fund (GAF)

Project Details




2019 - 2020


Armenia / Eastern Europe & Central Asia


Green Finance


Green Economy Financing

Mitigation & Adaptation Finance


Gernot Kuhlisch

The Central Bank of Armenia established the German-Armenian Fund (GAF) in 1998 to provide support to the financial sector. Since then, the GAF has successfully implemented various lending programmes. In 2016, KfW and the Armenian government established a new GAF programme with the goal of supporting energy efficiency and renewable energy (EE/RE) investments by MSMEs; IPC was contracted to provide technical assistance to financial institutions participating in the programme. IPC’s work in 2016-2017 assisted select Armenian financial institutions in developing the capacity to engage in EE/RE lending and build loan portfolios of EE/RE loans with MSME clients. This co-operation between GAF and IPC resulted in significant knowledge transfer and the strong promotion of EE/RE lending in the Armenian MSME space.

The success of IPC’s initial work with the GAF programme and the proof of concept prompted a second phase of co-operation, with a focus on continuing to expand and streamline the programme.

Specifically, the second phase expanded by engaging new financial institution partners, increasing the efficiency of the lending process, and developing new EE/RE loan products.

IPC’s continued work with the GAF programme has allowed the consolidation and expansion of energy efficiency lending structures at multiple Armenian financial institutions, having a nation-wide impact. The training of technical staff such as energy auditors and continued partnership with groups such as R2E2 (a national energy audit provider) have also further enhanced local know-how and capacity for energy efficiency lending. The development of new EE/RE loan products and the further expansion of the green loan portfolio at partner financial institutions is playing a role in promoting CO2 savings and reducing carbon emissions in Armenia.

Key Achievements & Media

12 partner institutions
>400 bank staff trained


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