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Green for Growth Fund lends EUR 5 million more to Partner MCF to back energy efficiency measures

July 9, 2018

Photo: Pixabay
Green for Growth Fund lends EUR 5 million more to Partner MCF to back energy efficiency measures

The Green for Growth Fund (GGF) has secured a fresh, EUR 5 million loan to Bosnia and Herzegovina’s third-largest microcredit institution, Partner Microcredit Foundation (Partner MCF), its longstanding partner, to finance energy efficiency measures.

The energy efficiency measures to be financed with the senior loan investment are projected to result in annual primary energy savings of approximately 41,000 MWh, reducing CO2 emissions by 12,400 metric tons per year, according to a news release from the GGF.

Partner MCF provides microloans predominantly to rural customers for home insulation purposes in local communities. Bosnia and Herzegovina (BiH) has high potential for energy efficiency improvements, with energy intensity almost 40% higher than in other Western Balkan countries – more than twice the EU average.

“The GGF has enjoyed a longstanding collaboration with Partner MCF since 2012, when it became the fund’s first microcredit partner institution. This investment will greatly advance the GGF’s mission to boost energy efficiency and renewable energy in Southeast Europe,” said GGF Chairman Olaf Zymelka.

Partner was the first microcredit foundation from Bosnia and Herzegovina to cooperate with the GGF six years ago with the goal of promoting energy efficiency, Partner MCF Director Senad Sinanović recalled. “To date, Partner MCF has extended over EUR 12 million for energy efficiency, which was used to finance nearly 5,000 individual projects. Having invested in energy efficiency, Partner has supported significant energy savings in Bosnia and Herzegovina and contributed positively to CO2 reductions in the country,” he added.

Apart from BiH, the GGF, jointly established by German development bank KfW and the European Investment Bank (EIB), has secured loans for energy efficiency measures and renewables in SerbiaMacedoniaKosovo*, and Turkey.