Environment

Green for Growth Fund attracts EUR 135 million in green finance in 2020

Green for Growth Fund EUR 1 1 billion green finance

Photo: The GGF's impact through March 31 this year (GGF)

Published

June 28, 2021

Country

Comments

comments icon

0

Share

Published:

June 28, 2021

Country:

Comments:

comments icon

0

Share

The GGF Impact Report for 2020 revealed that it attracted EUR 135 million in investments and technical assistance commitments. The Green for Growth Fund’s portfolio increased to more than EUR 1.1 billion, covering over 40,000 end-borrowers.

Despite the tumultuous conditions brought about by the global pandemic, the Green for Growth Fund attracted EUR 135 million in investments and technical assistance commitments. The specialized financing vehicle published its impact report for 2020, detailing its green recovery strategy for stabilizing the markets during the crisis.

Since the fund’s inception in 2009, it facilitated over EUR 1.1 billion in subloans to over 40,000 end-borrowers. The United Nations–initiated Principles for Responsible Investment (PRI) has declared the GGF the winner of last year’s ‘Real-world impact initiative of the year’ award.

Financing green recovery, energy efficiency

The funds were dedicated to financing measures that boost a green recovery and advance energy efficiency, renewable energy and resource efficiency in the target regions of Southeast Europe, Turkey, the European Eastern Neighbourhood region and the Middle East and North Africa.

In the latest annual edition of the impact report, the GGF features success stories of the fund’s final beneficiaries undeterred by operational and market challenges. It continued to support critical investments in its target countries at different scales; whether it is the resilience of Serbian households via the fund’s green mortgage program, or expanding capacity at Georgia’s largest solar PV manufacturer.

Green for Growth Fund delivers EUR 1 1 billion green finance
Photo: Sectors financed since inception in 2009 (GGF)

Resilience in practice

Beyond the green finance and projects that the fund is delivering, the report also sheds light on its impact in terms of energy savings, carbon dioxide emissions reduction and the installation of renewable energy generation capacity.

“This year showed what resilience looks like in practice. Thanks to the trust and support of our shareholders and investors, we can continue driving a green transformation action across GGF’s regions of operation,” Chairperson of the GGF Board of Directors Olaf Zymelka says.

Green for Growth EUR 1 1 billion green finance
Photo: Total disbursements by beneficiary type since 2009 (GGF)

Operations in 19 markets

The Green for Growth Fund invests in measures designed to cut energy use and CO2 emissions, and improve resource efficiency in 19 markets. It 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.

Zymelka: This year showed what resilience looks like in practice

The GGF was initiated as a public-private partnership 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, 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. The Green for Growth Fund works with 55 partner institutions.

Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

Romanian town Beius geothermal distring heating 100

Romanian town Beiuș to boost geothermal distring heating to 100%

04 April 2025 - The local authority in Beiuș, a trailblazer in geothermal district heating in Romania, should apply for European funding to reach full coverage

Share coal power Finland nearly zero cogeneration plant shuts down

Share of coal power in Finland nearly zero as cogeneration plant shuts down

03 April 2025 - The now closed Salmisaari coal plant accounted for just 0.8% of the electricity mix in Finland together with three remaining ones

Filipe Araùjo, Deputy Mayor of Porto, Portugal and Vice President of Energy Cities, one of EUSEW partner organisations

Building resilient cities: how to align competitiveness and sustainability in Europe’s energy transition?

24 March 2025 - With the new EU Institutions taking office, it seems that the main discourse has shifted from the EU Green Deal to competitiveness. This new narrative presents both a challenge and an opportunity for European cities

Vote LUCE Awards champion women s pivotal roles green transition

Vote at LUCE Awards to champion women’s pivotal roles in green transition

19 March 2025 - LUCE Awards celebrates the outstanding contributions and achievements of women leading the way in the green transition