The European Bank for Reconstruction and Development (EBRD), with the support of the European Union and Austria, has entered into a loan agreement with NLB Banka in Montenegro. It is providing EUR 2 million to on-lend to homeowners for investments in energy efficiency measures, aimed at reducing energy costs and CO2 emissions.
The funds are provided through the Green Economy Financing Facility (GEFF), which supports investments in high-performance green technologies, materials, and solutions for privately owned residential buildings.
Homeowners will get help in identifying and purchasing energy-saving equipment, such as insulation, windows, heat pumps and solar panels, according to the announcement.
Residential buildings are a significant source of CO2 emissions
Green technologies will reduce greenhouse gas emissions, lower energy costs, and improve the quality of life for apartment owners, EBRD said. The beneficiaries can also receive additional technical assistance and subsidies of 20% of the loan value after installation, the bank added.
The EU and bilateral donors have provided funds through the Western Balkans Investment Framework (WBIF) as part of the Regional Energy Efficiency Programme (REEP).
The Austrian Federal Ministry of Finance has provided additional funds for technical assistance.
“Residential buildings account for a significant amount of CO2 emissions – that is why our funds will make a meaningful positive difference to Montenegrin citizens, their energy costs, and the country’s environment”, the EBRD’s Head of Montenegro Remon Zakaria said.
President of Podgorica-based NLB Bank Martin Leberle emphasized that working with institutional partners will provide clients with new financing opportunities to improve energy efficiency.
“We will ensure that residential homeowners have the necessary finance to make important investments, with a positive impact on our environment. It will provide them with more comfortable homes, while we also build together a greener country”, he said.