January 6, 2020
January 6, 2020
The Green for Growth Fund said it has marked ten years since establishment. The ceremony in Frankfurt was hosted by its advisor Finance in Motion, GGF added. It also pointed out its green finance portfolio reached EUR 1 billion.
The number of clients in Southeast Europe, the Caucasus, the Middle East, and North Africa surpassed 35,000, according to the report. Climate finance was advanced in renewable energy, energy efficiency and resource efficiency. GGF, one of the first specialized vehicles in the said regions, revealed its activity accounts for annual energy savings of more than 3 TWh.
The investments prevent the emission of over 850,000 tons of carbon dioxide while 450,000 tons of water, waste, and resources are sustainably managed each year, it noted in the announcement. It highlighted its layered fund structure, saying it leverages public contributions to mobilize private capital. The fund mainly works through local intermediaries that disburse loans to individuals and businesses.
The investments prevent the emission of over 850,000 tons of carbon dioxide while 450,000 tons of water, waste, and resources are sustainably managed each year
GGF also invests directly. Examples are the largest wind parks in Ukraine and in Serbia, the first wind park in Georgia and the largest solar park in Egypt. The GGF Technical Assistance Facility complements the operations by, for instance, training local financial institutions to deliver and promote green finance, or by spreading community awareness of the benefits of energy-efficient home improvement.
The layered fund structure leverages public contributions to mobilize private capital
Chairman Olaf Zymelka stressed the need to take climate action. “That requires investing resources, especially capital, into lasting solutions that have real impact. For the last ten years, the Green for Growth Fund has been doing precisely that: opening up concrete investment opportunities that expand the use of renewables and enable access to targeted financing for climate protection measures. For that, I would like to thank our partners for their invaluable support. We are looking forward to blazing further trails together with them in the future,” he said.
Stevens: The GGF Technical Assistance Facility has been equipping individuals and institutions with the tools to make a real change
Director at Finance in Motion Lloyd Stevens added GGF is committed to long-term transformation and that the GGF Technical Assistance Facility has been equipping individuals and institutions with the tools to make a real change. “At the same time, we conduct thorough impact measurement and monitoring to ensure that GGF activities are delivering on their goals. This comprehensive approach has been the key to the fund’s depth of impact over these ten years,” he stated.
GGF is a public-private partnership founded in December 2009 by Germany’s KfW Development Bank and the European Investment Bank, with financial support from the European Commission, the German Federal Ministry for Economic Cooperation and Development (BMZ), the European Bank for Reconstruction and Development and the Austrian Development Bank (OeEB). It was later joined by donors, other international financial institutions and institutional private investors, including the International Finance Corporation, Dutch development bank FMO and German ethical bank GLS.
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