Renewables

Development Bank of Austria invests EUR 19.8 million in GGF

Development Bank of Austria OeEB EUR 19 8 million GGF

Photo: Camila Fernández León on Unsplash

Published

April 18, 2024

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Published:

April 18, 2024

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As another milestone in their partnership, the Green for Growth Fund (GGF) and the Development Bank of Austria (OeEB) have announced an investment of EUR 19.8 million. The recent transaction underscores a decade of collaborative efforts in promoting sustainable development and combating climate change in Southeast Europe.

The EUR 19.8 million investment by the Development Bank of Austria, its fifth transaction with GGF, replaces the expired initial agreements signed 10 years ago. Through the collaborative efforts, OeEB has channeled almost EUR 70 million into climate protection measures via GGF. The two partners said it is a testament to their shared commitment to environmental sustainability.

The investment is aligned with Austria’s climate targets, demonstrating both organizations’ strategic focus on climate protection and sustainable finance, the announcement adds.

“This latest investment from OeEB not only celebrates a decade of partnership but also reinforces our joint mission towards a greener future. Together, we have made strides in energy efficiency and renewable energy that resonate beyond borders, setting a benchmark for sustainable development,” Chairperson of GGF Christopher Knowles stated.

Enduring strength of collaboration

The Green for Growth Fund invests in measures designed to cut energy use and CO2 emissions and improve resource efficiency in 19 markets across Southeast Europe and the Caucasus, in Ukraine, Moldova, the Middle East and North Africa. It provides financing directly to renewable energy projects, corporates and municipalities, or indirectly, via selected financial institutions.

GGF was initiated as a public-private partnership in December 2009 by Germany’s KfW Development Bank and the European Investment Bank. It received financial support from the European Commission, German Federal Ministry for Economic Cooperation and Development, European Bank for Reconstruction and Development and OeEB.

GGF is a silver sponsor of Belgrade Energy Forum this year

The fund’s investor base comprises donor agencies, international financial institutions and institutional private investors including the International Finance Corp., Dutch development bank FMO and German ethical bank GLS. The GGF is advised by Finance in Motion while MACS Energy and Water acts as the technical advisor.

“The extension of our partnership with OeEB through this significant investment is a testament to the enduring strength and mutual benefits of our collaboration. Over the past decade, we have collectively fostered sustainable economic growth and environmental stewardship in Southeast Europe,” GGF’s Fund Director Borislav Kostadinov remarked.

GGF is a silver sponsor of Belgrade Energy Forum. The conference is scheduled for May 13 and 14 in Serbia’s capital city.

Development Bank of Austria allocates more resources for fighting climate change

With its new strategy, the Development Bank of Austria has placed an even greater focus on green finance and measures to fight climate change, executive board member Sabine Gaber pointed out.

The development financing institution’s full name is Oesterreichische Entwicklungsbank. It has been in operation since March 2008. OeEB specialises in long-term financing of sustainable private sector projects in developing countries.

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