Photo: Simon Gupta (pictured left) and Borislav Kostadinov (GGF)
In its Impact Report 2024, the Green for Growth Fund outlined how it powers the green transition across Southeast Europe, the Caucasus and beyond – from repurposing coal sites and decarbonizing industries to strengthening energy security and building climate resilience. It ended last year with EUR 1.09 billion in assets under management and an outstanding investment portfolio of EUR 1.03 billion.
Luxembourg-based GGF has become one of the largest green blended-finance funds. It marked its 15th anniversary in 2024 by passing the EUR 1 billion mark in its portfolio.
“To date, we have delivered over EUR 2 billion in green finance through 70+ active financial institutions, companies, and infrastructure projects. This is impact on a systematic level and reflects the dedication of our partners, teams, and investors. We delivered many landmark projects as we continue to grow our direct lending,” the fund said in its 2024 Impact Report: Breaking the billion for lasting green impact.
GGF highlighted its role in transforming legacy energy systems into clean energy sites in North Macedonia. “We are also investing in corporate decarbonization across resource-intensive sectors in Turkey, including the country’s second-largest retail chain. Working with our financial institution partners, Ukraine’s energy security – and the security of the wider region – remains our focus,” the update reads.
Driving the energy transition and strengthening energy security is an urgent task, the fund said and stressed that its commitment remains strong. It ended 2024 with EUR 1.09 billion in assets under management and an outstanding investment portfolio of EUR 1.03 billion.
Energy-intensive sectors in region can decarbonize
The cumulative volume invested in partner lending institutions has reached EUR 2 billion. GGF is active in 18 countries.
“Passing the EUR 1 billion mark brings greater responsibility. We must continue to show the world that energy-intensive sectors in the region can decarbonize and renewables can lead to energy stability and security,” Chairperson of the Board of Directors Simon Gupta stated.
Headline figures include 1.4 million tons of carbon dioxide emission savings per year, which is the equivalent of taking 949,000 cars off the road. GGF supported 1.76 GW of renewable energy capacity through 2024, which is a whopping 36.4% more than one year before. Its activity resulted in 2.16 million cubic meters of water saved or treated per annum, which translates to 865 swimming pools.
GGF strategically manages impact through supporting measures that mitigate climate change and promote sustainable economic growth in Southeast Europe including Turkey, the European Eastern Neighborhood Region, and the Middle East and North Africa.
From coal pit to solar plant
Recognizing the need for energy independence, the Western Balkans are prioritizing projects that support the green energy transition, GGF pointed out.
“But financing is essential to help countries shift to domestic and clean renewable power. We arranged EUR 25.7 million in project financing for a 50 MW solar power generation project on the site of the former Oslomej coal mine in Kičevo, North Macedonia,” it added.
GGF arranged a EUR 25.7 million package for a PV plant on former coal mining land in the REK Oslomej complex in North Macedonia
The region’s reliance on legacy coal-fired power plants has resulted in outages, shortfalls, closures and volatile energy costs, GGF warned. “Governments recognize this and are increasingly prioritizing sustainable power projects aimed at reducing fossil fuel imports, lowering costs and stabilizing energy supply. To fulfill this ambitious agenda, they need support,” the fund stressed.
Oslomej is GGF’s second project finance transaction in North Macedonia, following its investment as a minority shareholder in the 36 MW Bogoslovec wind farm in 2021.
“Our investment in the Oslomej solar project underscores our commitment to North Macedonia’s green energy transition. By reducing reliance on fossil fuels and enhancing energy security, this project aligns with our mission to mitigate climate change and promote sustainable energy solutions,” said Fund Director for GGF at Finance in Motion Borislav Kostadinov.
Of note, he was one of the keynote speakers at this year’s edition of Belgrade Energy Forum (BEF 2025), organized by Balkan Green Energy News. Finance in Motion is GGF’s advisor.
Future-proofing Turkish businesses
The fund provided USD 26 million to Sanko Tekstil, one of the largest yarn producers in Turkey. It financed the full cost of a 20 MW rooftop photovoltaic system and partially covered the construction of a fiber recycling facility in Gaziantep.
Meanwhile, a USD 18 million investment into A101, the country’s second-largest retail chain, is decarbonizing store operations across 81 cities via a large-scale solar installation. It supported a 30 MW solar power project, expected to meet 10% of the company’s electricity needs.
Embedding sustainability
GGF complements its financing with advisory and capacity-building services, and risk-management support. It includes environmental and social due diligence, as well as monitoring, to keep projects aligned with international best practices.
The advisory and capacity-building activities in 2024 focused on embedding sustainability and advancing green finance across partner institutions.
A key highlight was the completion of four Deep Greening Mainstreaming projects, which supported financial institutions in developing strategies in the environmental, social, and governance (ESG) sector, green products, and internal sustainability structures.
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