Energy Efficiency Guarantee Fund

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With an FC grant of up to EUR 25 million, the Brazilian development bank BNDES will be supported in the introduction and implementation of a guarantee fund for loans to small and medium-sized enterprises (SMEs) that invest in energy efficiency measures. The aim of the project is to mobilize private sector investments in energy efficiency measures. This can contribute to achieving climate protection goals on the one hand and to ensuring the economic stability of small and medium-sized enterprises on the other (economic recovery post-COVID). The planned total volume of the guarantee fund amounts to almost EUR 130 million. This includes an FC grant of up to EUR 25 million (phase 1) and a further FC grant of up to EUR 25 million for a second phase of implementation. In addition, BRL 45 million (EUR 8.86 million) will be made available for the guarantee fund from the national program to promote energy efficiency PROCEL. By 2024, BNDES intends to raise a further USD 75 million (EUR 69.44 million) from the Green Climate Fund for the guarantee fund. The project is supported by an accompanying measure with the aim of improving the framework conditions for successful implementation. In technical terms, it fits into the existing focus of promoting renewable energies and energy efficiency in cooperation with Brazil and into the framework of the BMZ's Corona emergency program and thus corresponds to the federal government's funding objectives.