The Green for Growth Fund has so far supported the development of over 1 GW in renewable energy capacity. Southeastern Europe accounts for two thirds of the portfolio that GGF built until its tenth anniversary at the end of 2019, matched by the share of primary energy savings.
The Green for Growth Fund said it is not a stranger to adversity and stressed the partnerships forged over the past decade have equipped it with the strength to overcome the impact of the coronavirus pandemic. The Luxembourg-based investment company has marked its tenth anniversary and released the GGF Impact Report 2019, outlining achievements in energy efficiency, renewable energy, and resource efficiency in the target regions of Southeast Europe, the Caucasus, Ukraine, Moldova, the Middle East and North Africa.
The document notes the overall capacity of renewable energy supported so far surpassed 1 GW, equivalent to a solar power plant of 940 football fields. More than EUR 1 billion in green finance has been provided to over 36,000 final recipients, contributing to seven of the United Nations’ Sustainable Development Goals.
The fund secured 25,000 subloans through more than EUR 250 million in disbursements for energy efficiency measures or small-scale renewable energy projects
GGF started in Southeast Europe in 2019 and now works in 19 markets. Its first investments were agreed in 2010 with Şekerbank, Yapı Kredi Leasing and IK Banka.
In collaboration with microfinance institutions and other providers focused on micro and small-sized enterprises, more than 25,000 subloans were provided through more than EUR 250 million in disbursements for energy efficiency measures or small-scale renewable energy projects. Over 60% of the portfolio is dedicated to financing for households and small businesses.
The largest share of the subloan investment portfolio in the Balkans is in Turkey, followed by Serbia
At the end of last year, there was EUR 546.3 million in available funding and a committed investment portfolio of EUR 581.8 million. The fund has 77 partner institutions and 22 investors and donors.
In the region that Balkan Green Energy News tracks, it has 28 partners, of which a quarter is in Turkey. The country accounts for EUR 334.6 in subloan investments since inception. Next was Serbia with six partner institutions, EUR 211.2 million through 2019 and two renewable energy projects.
The portfolio after a decade of presence in Southeastern Europe came in at EUR 675.2 million, according to GGF’s data. Primary energy savings in the region are 2.07 TWh per year compared to 3.24 TWh in total.
Primary energy savings in the region are 2.07 TWh per year compared to 3.24 TWh in total
GGF was the first public-private partnership structure dedicated to promoting energy efficiency and renewable energy finance, and the first to specialize exclusively in this type of investment in Southeast Europe and Turkey – so it was impossible to envision what it would become, said Chairman Olaf Zymelka.
“Fast forward 10 years and we have now expanded to new regions in Eastern Europe, the Caucasus, the Middle East, and North Africa, and unleashed EUR 1 billion in green finance to more than 36,000 clients to reduce energy and resource consumption, and expand the use of renewables. The GGF has also expanded beyond energy into the interlinked areas of waste and water management,” he stated and promised more groundbreaking feats.
Zymelka: The fund has also expanded beyond energy into the interlinked areas of waste and water management
The fund started the Green for All forum last year for dialogue in the microfinance ecosystem about promoting green finance for households and small and medium-sized enterprises.
Finance in Motion advises the GGF.