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.
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.
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.