BMZ contributes EUR 8m to Green for Growth Fund

Microfinance Focus, Sep 3, 2010: Increasing the fund’s size to EUR 128 million, the German Federal Ministry for Economic Cooperation and Development (BMZ) has made a EUR 8 million contribution to the Green for Growth Fund, Southeast Europe (GGF) to finance energy efficiency and small-scale renewable energy projects implemented by businesses and households within the region.

 BMZ’s contribution is supported by EUR 1 million in grants to GGF’s Technical Assistance Facility. The funds will be used to support the GGF’s partner institutions in developing financing instruments for energy efficiency and renewable energy projects, to help design and implement such projects, as well as to increase the awareness about their benefits.

“The GGF will be able to leverage BMZ’s contribution by up to eight times, generating over EUR 60 million in investments in the field of energy efficiency and renewable energy”, said Monika Beck, Chairwoman of the Board of Directors of the GGF. “This will have a significant impact in reducing energy consumption and CO2 emissions in GGF’s target region. The Fund is very pleased to have BMZ as a partner in this effort.”

Initiated by the European Investment Bank and KfW (The German Development Bank), GGF is dedicated to enhance energy efficiency and foster renewable energies in Southeast Europe, including Albania, Bosnia and Herzegovina, Croatia, FYR Macedonia, Kosovo, Montenegro, Serbia and Turkey.

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 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.

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