Regional Energy Efficiency Fund for the Western Balkans and European Neighbourhood Regions (GGF IV)

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In order to counteract climate change and support sustainable development in the fund's target region (Western Balkans, eastern and southern EU neighbourhood region), extensive environmentally friendly investments are necessary. The offer for sustainable and broad-based financing of investments in energy efficiency (EE) and renewable energies (RE) is not sufficiently available from local financial markets. The aim of the project is primarily to sustainably develop and expand the offer for broad-based financing of investments in EE/RE in the target regions. Secondly, the measure contributes to reducing energy consumption and/or greenhouse gas emissions among final borrowers in the target region. The project sponsor is the regional energy efficiency fund for the Western Balkans and European neighbourhood regions, the Green for Growth Fund (GGF). This was founded in December 2009 under the auspices of KfW and the EIB. The fund contributes to the development of the market for EE and RE by promoting investments by MSMEs and private households via the local financial sector and, increasingly, direct investments in project companies in the RE sector that achieve an average of 20% energy savings and/or 20% CO2 emission reductions. The GGF is now active in 19 countries in the Western Balkans (+Turkey) and in the eastern and southern neighbourhood region of the EU. BMZ and the EU are the largest donors to the GGF and hold a large share of the GGF's first-loss tranche in the form of C and L shares. In addition, significant contributions from FZR funds for accompanying measures were paid into the Facility for Technical Assistance (TA Facility). The funds for this project amounting to EUR 9 million are granted in the form of an FC trust participation from the Financial Cooperation with Regions (FZR) title.