The Banca Transilvania has become the first bank in Romania to provide loans to households to raise energy efficiency levels. The money for the loans comes from the European Bank for Reconstruction and Development (EBRD) Green Economy Financing Facility whose officials warned that energy efficiency improvements are urgently needed.
This is the first time that the EBRD is providing financing for energy efficiency, renewable energy and water-saving solutions for households in that country. The total of EUR 100 million will be provided through local partner banks in Romania.
The program was launched at an event in Bucharest which was attended by government representatives, bankers, green technology suppliers and developers of energy efficient housing.
EBRD Regional Director for Romania and Bulgaria Matteo Patrone told the gathering that Romania urgently needs energy efficiency improvements because most of the housing buildings in the country were built between the years 1960 and 1990 and were not well insulated thermally. He warned that financing for energy efficiency projects in housing is limited.
Banca Transilvania received EUR 40 million from the EBRD for the loans to households, housing associations and service providers. The loans can be used to finance off-the-shelf green solutions and technical advice on tailor-made low-energy solutions for complex investments with grant-funded technical assistance provided by the Global Environment Facility and the EBRD Shareholder Special Fund, the EBRD said in press release.
The EBRD press release recalled that the bank developed the Romania SME Sustainable Energy Finance Facility (RoSEFF) in 2011 and that it has provided around EUR 4 billion in financing for similar green energy programs in 24 countries to date.
The GEFF is part of the EBRD’s Green Economy Transition approach, under which the Bank intends to earmark 40% of its annual investments to finance green energy by the year 2020.