European Commission invests additional EUR 19 million into Green for Growth Fund
- Proceeds to be used to finance energy efficiency and renewable energy investments in Croatia and Turkey
Frankfurt am Main, July 18, 2011 - The European Commission announced today that it has invested EUR 19 million in the first-loss tranche of the Green for Growth Fund, Southeast Europe ("GGF" or "Fund") to finance the Fund's energy efficiency and renewable energy investments in Croatia and Turkey. This is the second investment agreement the European Commission has signed with the GGF, following a EUR 20 million contribution on the occasion of the Fund's 1st closing in December 2009 1. In addition, The European Commission has contributed EUR 5 million for technical assistance by the GGF to help investments. The European Commission's current investment increases the GGF's total volume of investor commitments to EUR 147 million.
The GGF - initiated in December 2009 by the KfW Entwicklungsbank (The German Development Bank) and European Investment Bank (EIB) with the financial support of the European Commission and the European Bank for Reconstruction and Development (EBRD) - will use the proceeds to provide dedicated financing to small and medium-sized enterprises and private households in Croatia and Turkey via local financial institutions. The Fund will also direct part of the financing to local energy service companies, renewable energy companies or projects and energy efficiency service and supply companies.
The investment made by the European Commission, significantly increases the GGF's potential to achieve significant development impact by helping private households and businesses in Croatia and Turkey reduce their energy costs and consumption, increase companies' competitiveness, reduce CO2 emissions and increase energy security in these countries.
Given the growth that the markets of Croatia and Turkey will undergo as they converge with the European Union, there will be an increasing demand for energy. Croatia and Turkey are net energy importers, depending on gas and electricity supplies from neighboring regions. In view of global warming and constrained supplies of fossil fuels, the mission of the GGF is to promote increased energy efficiency and the use of renewable energy sources by providing the necessary funding as against conventional, carbon-intensive energy sources.
"The investment made by the European Commission signals its confidence in the GGF and testifies to the value of the Fund's public-private partnership model as a catalyst for energy efficiency and renewable energy finance", said Monika Beck, Chairwoman of the Board of Directors of the GGF. "Croatia and Turkey constitute a substantial market for investment opportunities in energy efficiency and renewable energy. The GGF is very pleased to have the European Commission as a partner in this effort"
"The European Union is leading the way in promoting sustainable development worldwide, and even more can be achieved on our doorstep" said Gerhard Schumann-Hitzler, Director at DG Enlargement (European Commission)."The Green for Growth Fund is one of the EU's initiatives to support the Western Balkans and Turkey in their efforts to fight against climate change and meet their energy efficiency targets. The European Commission is pleased to be part of this partnership."
1 "The EU is participating in the GGF on behalf of the Beneficiaries* to support the stabilisation of financial markets and economies. The C- shares are invested in GGF under the IPA (Instrument of Pre-Accession) Multi-Beneficiary Programme for Western Balkans and Turkey".
* potential candidates and candidate countries to EU accession: Albania, Bosnia and Herzegovina, Croatia, the former Yugoslav Republic of Macedonia, Montenegro, Serbia, as well as Kosovo under UNSCR 1244/99, and Turkey
ABOUT THE GREEN FOR GROWTH FUND, SOUTHEAST EUROPE (GGF)
Initiated by the European Investment Bank (EIB) and KfW Entwicklungsbank (The German Development Bank), the Green for Growth Fund, Southeast Europe (GGF) is dedicated to enhance energy efficiency and foster renewable energies in Southeast Europe, including Albania, Bosnia and Herzegovina, Croatia, FYR Macedonia, Kosovo (under UNSCR 1244/99), Montenegro, Serbia and Turkey. The GGF provides refinancing to financial institutions for on-lending to small and medium-sized enterprises and private households for financing energy efficiency projects. The Fund also makes direct investments in specialist energy service companies (ESCOs), energy efficiency service and supply companies and renewable energy projects and public entities. The activities of GGF are supported by a Technical Assistance Facility. The Fund is a Public-Private Partnership. Its investor base comprises donor agencies, international financial institutions and institutional private investors, including the European Commission (with the European Investment Fund as Trustee), the German Federal Ministry for Economic Cooperation and Development (BMZ), KfW Entwicklungsbank, EIB, the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC) and Sal. Oppenheim. The Fund is registered under Luxembourg law as a Variable Capital Investment Company (SICAV). GGF is privately managed by Oppenheim Asset Management Services S.à r.l., Luxembourg, in consortium with the investment advisor Finance in Motion GmbH, Frankfurt/Main, Germany, and technical advisor MACS Management & Consulting Services GmbH, Frankfurt/Main, Germany.
Green for Growth Fund, Southeast Europe
Mr. Samir Djikić
Tel: +49 (0)69 9778 7650-26