Luxembourg, January 6, 2020 – The Green for Growth Fund (GGF) is celebrating ten years of advancing climate finance in Southeast Europe, the Caucasus, the Middle East, and North Africa. Established in December 2009, the GGF was one of the first specialized vehicles to invest in renewable energy, energy efficiency, and resource efficiency measures in these regions. Now, after its first successful decade, the fund has unleashed EUR 1 billion in green finance to more than 35,000 loan recipients to reduce energy and resource consumption and expand the use of renewables. These investments are now saving over 3 million megawatt hours of energy, preventing the emission of over 850,000 tons of CO2, and sustainably managing more than 450,000 tons of water, waste, and resources each year.
The GGF was one of the pioneers of a layered fund structure that leverages public contributions to mobilize private capital toward green investments in its target regions. The fund mainly works through on-the-ground financial intermediaries that disburse loans to individuals and businesses for measures to improve energy and resource efficiency. The GGF also invests directly in renewable energy projects, such as the largest wind park in Ukraine and in Serbia as well as the first wind park in Georgia and the largest solar park in Egypt.
In addition, the GGF Technical Assistance Facility helps anchor and amplify the impact of these investments by, for example, training local financial institutions to deliver and promote green finance, or by spreading community awareness of the benefits of investing in energy-efficient home improvement.
GGF Chairman Olaf Zymelka said: “The need to take action to protect our climate is clearer than ever. That requires investing resources, especially capital, into lasting solutions that have real impact. For the last ten years, the Green for Growth Fund has been doing precisely that: Opening up concrete investment opportunities that expand the use of renewables and enable access to targeted financing for climate protection measures. For that, I would like to thank our partners for their invaluable support. We are looking forward to blazing further trails together with them in the future.”
Lloyd Stevens, Director at GGF advisor Finance in Motion, added: “The GGF is committed to long-term transformation. That is why, alongside the fund’s investments, the GGF Technical Assistance Facility has been equipping individuals and institutions with the tools to make a real change. At the same time, we conduct thorough impact measurement and monitoring to ensure that GGF activities are delivering on their goals. This comprehensive approach has been the key to the fund’s depth of impact over these ten years.”
A ceremony to mark the fund’s 10-year anniversary was hosted by Finance in Motion on 12 December in Frankfurt.
For more on the fund, visit www.ggf.lu.
ABOUT THE GGF
The GGF helps reduce the use of energy and resources and prevent CO2 emissions. It pursues this goal by providing dedicated financing to businesses and households across 19 markets in the Southeast Europe Region including Turkey, the European Neighborhood Region-East, and the Middle East and North Africa. By using a blended finance structure and working through local partner institutions, the GGF is able to raise awareness and implement green finance activities. The fund combines its financial offering with tailored technical assistance that helps build capacity and which brings energy efficiency measures, renewable energy, and improved resource management toward the mainstream. In addition, by managing the environmental and social (E&S) risks associated with its investments, the fund sets standards for its partners and supports them to enhance their own E&S management systems, as required.
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). The fund’s growing investor base comprises donor agencies, international financial institutions and institutional private investors, including the International Finance Corporation, the Dutch development bank FMO, and the German ethical bank GLS. The GGF is advised by Finance in Motion GmbH. MACS Management & Consulting Services GmbH, Frankfurt am Main acts as the technical advisor.
For more information see www.ggf.lu and follow us on Twitter @GreenGrowthFund
Media contact GGF
Manager Marketing & Communications
Phone: +49 (0)69 271 035-171