BMZ INVESTS FURTHER EUR 10 MILLION IN GGF
- Investment includes EUR 1 million for GGF technical assistance to strengthen partner institutions
- During the past five years the Fund supported more than 26 partner institutions in its target region
- Estimated annual savings to date: 218 thousand tons of CO2, and over 850 thousand MWh
Luxembourg, 25 February 2015 The German Federal Ministry for Economic Cooperation and Development (BMZ) is investing a further EUR 9 million in the Green for Growth Fund, Southeast Europe (GGF). The investment will be significantly leveraged through investments from international financial institutions, and increasingly from private investors as well, to mobilize additional funding for energy efficiency (EE) and renewable energy (RE) projects in its target region. The funding will be used to finance EE and small-scale RE projects for businesses and households within the Southeast Europe and the European Eastern Neighbourhood regions.
GGF - driving energy efficiency and fostering renewable energies
The GGF’s target countries are characterized by rising energy demand and a mostly obsolete energy infrastructure; in most countries energy is produced primarily from coal and gas-fired power plants. Not only does the burning of these fossil fuels have a negative impact on the environment, they also usually have to be imported at high cost. The BMZ has been an important partner to the GGF since its inception in 2009 in addressing these issues and so far has invested a total of EUR 31.5 million in the Fund.
“The GGF is very pleased to have the BMZ as a partner. Coupling investments in renewable energy with measures to maximize energy efficiency is a key aspect of the GGF’s mission. The additional funding from the BMZ supports this approach and enables us to increase outreach in our target regions,” explained Christopher Knowles, Chairman of the Board of Directors of the Green for Growth Fund, Southeast Europe.
A measurable success in reducing energy consumption and CO2 emissions
The GGF’s success in energy efficiency (EE) is measured in megawatt hours of primary energy saved through measures financed by the Fund. Typical measures include wall insulation and double-glazing in homes, modernized energy-efficient equipment in small businesses, and improved manufacturing processes in large enterprises. The GGF also invests in renewable energy technologies such as small hydro, wind, and solar which produce clean energy to replace fossil and other non-renewable fuels, measurably reducing CO2 emissions.
During the past five years the Fund was able to support more than 26 partner institutions in its target region with funding and/or technical assistance. To date an estimated 218 thousand tons of CO2, and over 850 thousand MWh of electrical power have been saved annually through energy efficiency and renewable energy investments financed by the GGF.
GGF Technical Assistance Facility to strengthen partner institutions
In addition to investing in the Fund, the BMZ is contributing a EUR 1 million to the GGF’s Technical Assistance Facility. The monies will be used to support the GGF’s partner institutions in developing financing instruments for EE and RE projects, to help design and implement such projects, and to increase public awareness of the benefits of EE and RE investments. Supported programs include trainings on energy efficiency for local partner lending institutions and programs for maintaining international environmental and social standards.
ABOUT THE GREEN FOR GROWTH FUND, SOUTHEAST EUROPE (GGF)
The Green for Growth Fund, Southeast Europe (GGF) is dedicated to enhancing energy efficiency and fostering the use of renewable energy sources in Southeast Europe, including Albania, Bosnia and Herzegovina, Croatia, FYR Macedonia, Kosovo*, Montenegro, Serbia, and Turkey as well as in the nearby European Eastern Neighbourhood region comprised of Armenia, Azerbaijan, Georgia, Moldova and Ukraine. The GGF provides refinancing to financial institutions for on-lending to enterprises and private households seeking to finance energy efficiency projects. The GGF also invests directly in small to medium-scale renewable energy projects. To maximize the impact of the Fund’s investment activities, the GGF’s Technical Assistance Facility offers capacity building support to local financial institutions and partners. The GGF was initiated as a public-private partnership in December 2009 by the KfW Development Bank (KfW) and the European Investment Bank (EIB) with the financial support of the European Commission, the German Federal Ministry for Economic Cooperation and Development (BMZ), and the European Bank for Reconstruction and Development (EBRD). Its growing investor base comprises donor agencies, international financial institutions and institutional private investors, and recently added the International Finance Corporation (IFC) and Netherlands Development Finance Company (FMO). The GGF, registered under Luxembourg law as a SICAV (variable capital investment company), is privately managed by Oppenheim Asset Management Services S.à r.l., Luxembourg, in concert with the fund advisor, Finance in Motion GmbH, Frankfurt/Main, Germany, and the technical advisor, MACS Management & Consulting Services GmbH, Frankfurt/Main, Germany.
For more information: www.ggf.lu
* This designation is without prejudice to positions on status, and is in line with UNSC 1244 and the ICJ Opinion on the Kosovo Declaration of independence.
Media contact GGF
Phone: +49 (0)69/977 876 50-22