SUNREF II Palestine: supporting energy efficiency projects

In December 2021, Proparco signed a €11.5m fund delegation agreement with the European Union to continue the SUNREF Palestine project, launched with AFD. SUNREF is an AFD Group product and label which aims to facilitate investments in the green energy sector by working on an approach targeting both supply and demand.

SUNREF II Palestine is the first partnership between Proparco and the European Union on climate finance. This project is giving Proparco the opportunity to strengthen AFD Group’s fruitful partnership with the European Union on this major issue of the fight against climate change.

This second phase of the SUNREF Palestine project has been designed to give priority to strengthening the energy efficiency market, which is still much less mature than the renewable energies market in Palestine.

The SUNREF II Palestine project is fully in line with the European Union’s investment priorities in Palestine. These investments are managed by the EU-Palestine Investment Platform, which AFD Group contributes to
The €11.5m of funds delegated to Proparco by the European Union will be used to finance investment premiums, to help build complex investment projects, and technical assistance for the two banks participating in the program, the project initiators (SMEs as a priority), and the local ecosystem, including the other market players and public authorities.

The activities of the SUNREF II Palestine project will be implemented from early 2022 to 2026.

This SUNREF II Palestine financing comes in addition to two credit lines signed by Proparco with two Palestinian banks to finance projects in the energy efficiency and renewable energy sectors.