GGF recorded its strongest ever net growth in its outstanding portfolio in 2021, with EUR 1.3 billion in green loans to over 42,000 end borrowers. The fund’s Technical Assistance Facility (TAF) had EUR 19 million across a record number of projects.
The Green for Growth Fund (GGF) has published its Impact Report for 2021. It highlights progress in mitigating climate change and promoting sustainable economic growth across its regions of operation, particularly through its flagship deep greening initiative, focused on the financial sector.
Despite challenging market conditions and social upheavals in its regions of operation, GGF marked several achievements like the first corporate transaction in a new market, the first equity investment, and first-time engagements with central banks and financial associations on green issues in Georgia, Armenia and Serbia.
Net growth in the outstanding portfolio reached an all-time high. GGF has facilitated EUR 1.3 billion in green loans to over 42,000 end borrowers. Activities of the fund’s Technical Assistance Facility (TAF) were worth EUR 19 million across a record number of projects, complementing the lending operations.
Collaboration with like-minded partners
The Green for Growth Fund secured EUR 40 million in private capital, bringing the private investor share to 26% of its assets. The deep greening initiative is aimed at creating sustainable finance norms and standards for financial services and increasing the sector’s strength and resilience in the face of the changing economic landscape.
The deep greening initiative is aimed at creating sustainable finance norms and standards for financial services
“The GGF, in collaboration with like-minded partners, continues to develop and leverage its innovative products and approaches. We are proud of the achievements from the past year, and with a tried-and-tested framework aimed towards clear goals for impact, continue driving a green transformation across the financial sector,” Chairperson Christopher Knowles said.
In the autumn, GGF embarked on the Green Journey to capture the unique stories from its partners and bring to life their experiences with green finance and show how profit and purpose can go hand in hand. Through the digital platform, the fund demonstrates how its partner financial institutions have diversified their portfolio, created new products, and increased their client base by putting sustainability at the core of their strategies.
Organic wine goes with green energy
The report reveals success stories like GGF’s first direct equity investment, in the Bogoslovec wind farm project in North Macedonia. In another impactful endeavor, Georgian organic wine producer Kartuli Marani made his facilities and processes more sustainable with the help of the fund’s Green Advisory program.
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, the Caucasus, Ukraine, Moldova, the Middle East and North Africa. The fund provides such financing directly to renewable energy projects, corporates and municipalities, or indirectly, via selected financial institutions.
The GGF’s Technical Assistance Facility maximizes the fund’s investment impact through support for capacity building at local financial institutions and partners.