Tirana, 13 October 2025 – The Green for Growth Fund (GGF) is accelerating climate action and green finance in Southeast Europe, supported by a EUR 20 million C-share investment and a EUR 4 million technical assistance donation from the European Union, provided via KfW Development Bank as trustee.
A series of new GGF financing agreements were signed at the EU-Western Balkans Investment Forum in Albania, held in the presence of key stakeholders, including national ministers and senior representatives from the European Commission, KfW, the Green for Growth Fund, and Finance in Motion. These signings took place in the context of the EU’s recent commitment to strengthen GGF’s activities in the Western Balkans. The event was witnessed by Delina Ibrahimaj, Minister of Economy, Albania, Valentina Superti, Director, Western Balkans, DG ENEST, European Commission and Lionel Rapaille, Director of Operations, Enlargement and Neighborhood Region, EIB and Dr. Markus Aschendorf, Head of Division at KfW.
The EU’s commitment brings catalytic capital to a region where targeted climate finance is critical to advancing the energy transition and sustainable economic growth. The C-share investment will enhance GGF’s blended finance structure, enabling the Fund to mobilize additional private capital and scale its support for renewable energy, energy efficiency, and climate resilience.
Simon Gupta, GGF Chairperson, stated:
“This investment sends a strong signal at a crucial time. With climate action under pressure and regional challenges mounting, GGF stands ready to scale. The EU’s support strengthens our ability to channel private and public capital into the markets that need it most, driving real progress where it matters.”
GGF has already invested over EUR 675 million in green finance across the Western Balkans 6 (WB6), supporting climate action, energy security, and sustainable industry.” This new investment by the EU will enable the Fund to grow its committed portfolio in the region to EUR 850 million, through local institutions and direct investments.
Borislav Kostadinov, GGF Fund Director at Finance in Motion, added:
"Across Southeast Europe, rising energy costs and infrastructure gaps offer major opportunities for green investments. The EU’s contribution strengthens our ability to expand the Fund’s operations and deliver impact at scale at exactly the right moment.”
In parallel with the EU’s C-share investment, GGF is expanding its regional footprint through new credit lines and subordinated loans in Kosovo, Serbia, and Bosnia and Herzegovina to scale green lending. The Fund is also advancing support for renewable energy and battery storage projects in Albania, North Macedonia and Montenegro and providing technical assistance to central banks to integrate climate risk into financial supervision.
The new EU-backed commitments are expected to avoid approximately 175,000 tons of CO₂ emissions, the equivalent of taking every third car off the road in Tirana.
The EUR 20 million subscription also underscores the longstanding role of KfW, which co-initiated the Fund and has been instrumental in building its structure and success. KfW continues to serve as a core partner, anchor shareholder, and trustee for the EU’s investment.
Dr. Markus Aschendorf, Head of Division at KfW, shared:
“The EC’s investments help drive impactful projects that are essential for the sustainable development of the Western Balkans and Eastern Neighborhood regions. As a co-initiator of the Fund, KfW has continuously supported the development of the GGF since its inception and remains committed to strengthening the Fund’s efforts in promoting energy efficiency and renewable energy projects.”
With this new investment from the EU, the Green for Growth Fund reinforces its position as a key instrument for delivering the European Green Deal and accelerating the green transition where it’s needed most.
With this new investment from the EU, the Green for Growth Fund reinforces its position as a key instrument for delivering the European Green Deal and accelerating the green transition where it’s needed most.
About the GGF
The Green for Growth Fund promotes energy efficiency and renewable energy in Southeast Europe, the Caucasus, the Middle East, and North Africa. By providing refinancing to local financial institutions, GGF helps businesses and households access sustainable energy solutions, fostering energy efficiency and reducing carbon emissions. GGF was initiated as a public-private partnership by the European Investment Bank and Germany’s KfW Development Bank, with financial support from the European Union, BMZ, and other international investors. Finance in Motion GmbH, Germany, serves as GGF’s advisor. www.ggf.lu
About Finance in Motion
Finance in Motion structures, manages, and advises almost €4 billion across 9 funds, all classified as Article 9. These private market funds drive impact for people and planet through regional financial intermediaries, direct investments, advisory and capacity building. Founded in Germany, with local expertise from Latin America to CEE, it has been investing in emerging markets for over 20 years. www.finance-in-motion.com
Media contact GGF
Nusha Westhoff
Director Marketing & Communications
Mobile: +49 69 271 035-789
Email: press@ggf.lu