EUR 2 billion
The Green for Growth Fund (GGF) is an impact investment fund that mitigates climate change and promotes sustainable economic growth by investing in measures that reduce energy consumption, resource use and CO2 emissions.
The fund, a blended finance structure, is a public-private partnership that leverages risk-capital provided by public institutions with additional private capital to substantially increase investment volumes to regions and sectors that do not normally attract such flows, and is an early and successful example of blended finance in action. The fund channels this dedicated financing to businesses and households through local financial institutions, and through direct investments to eligible projects and companies.
A dedicated Technical Assistance Facility provides know-how and technical expertise to ensure that these investments are successfully implemented and to a high international standard. It raises awareness on the importance of energy and resource efficiency and renewable energy and helps to develop the capacity of the GGF’s partners, as well as the market in general, to successfully deliver green finance and increase its demand.
The GGF operates in 19 markets across Southeast Europe, Turkey, the European Eastern Neighbourhood Region, and the Middle East and North Africa.
The initiators of the Green for Growth Fund are the European Investment Bank and Germany’s KfW Development Bank. The fund is additionally supported by contributions from the European Commission and the German Federal Ministry for Economic Cooperation and Development (BMZ) and a diverse group of international financial institutions and private investors.
Accurate reporting of achieved savings in primary energy and CO2 emissions is of great importance to the transparency and integrity of the GGF. To ensure maximum possible accuracy, every single loan and sub-loan is individually assessed and monitored in its savings and performance.
To do so, Financial Institutions are required to report on their sub-loan portfolio on a quarterly basis. For convenient handling of data Partner Institutions use eSave, a tool for calculation, monitoring and reporting of RE/EE measures and credit portfolios. The tool is customized for each region according to climate conditions, currency, language, etc.
Simple energy measures are approved by the eSave tool and impact is calculated based on built-in assumptions allowing instantaneous reporting about end-borrower loans.
The impact of complex projects is calculated by local energy auditors as projects require more detailed engineering analysis. The data entered into the eSave tool stems from audit reports.
Appointed by the shareholders, the fund’s Board of Directors is the main decision-making body, overseeing the fund and determining its strategy and approach. The board appoints the Investment Committee, comprising specialists in finance and energy. The Investment Committee approves all investment decisions, ensuring that they comply with the fund’s high standards and the strategic direction laid out by the Board of Directors.
The Board has also appointed an FX Committee to vet pricing and other matters pertaining to the fund’s local currency investments made utilizing its “L Share” class. These specialized shares enable the fund to internally absorb currency fluctuations made in local currency by allocating the related foreign exchange gains and losses to this dedicated share class.
The Technical Assistance Facility Committee approves the technical assistance projects proposed by the Advisor.
Specialist firms provide professional services to the GGF. The Advisor, Finance in Motion, supported by the Technical Advisor, MACS, ensures that each investment proposed to the Investment Committee has been thoroughly reviewed in terms of risks, opportunities, and impact.
Finance in Motion as the Technical Assistance Facility Manager coordinates and conducts technical assistance projects under the supervision of the Technical Assistance Facility Committee.
GGF's investments target at least a 20% reduction in energy consumption and/or CO2 emissions, as well as additional impacts related to water, waste and material inputs. The fund achieves this by working with local financial and non-financial institutions, and renewable energy project developers in its regions of operation.
Southeast Europe, including Turkey, as well as in the nearby European Eastern Neighborhood region and in the Middle East and North Africa (MENA). The GGF provides funding to financial and non-financial institutions to enhance their participation in the EE and RE sectors and also makes direct investments in renewable energy projects and other energy service providers.
Understand steps to access
The Green for Growth Fund provides investments in the energy efficiency and renewable energy sectors both indirectly, through financial institutions, and directly to non-financial institutions such as renewable energy companies or projects, energy service companies, energy efficiency service and supply companies as well as companies in general.
To receive GGF services, financial and non-financial institutions must become a GGF partner institution.
If you are a financial institution, find out more about what services the GGF offers here.
If you are a non-financial institution, find out more about what services the GGF offers here.
If you are a renewable energy project developer, find out more about what services the GGF offers here. Successfully access GGF services. Energy Project Developer; GGF Partner Institution (Financial or non-financial institution) Develop strong projects and receive technical assistance
Develop strong projects and receive technical assistance
The GGF has an independent Technical Assistance Facility, which plays a key role in supporting the fund’s promotion of energy efficiency (EE) and renewable energy (RE) by providing targeted technical assistance to financial institutions and project developers in conjunction with GGF funding. The facility operates hand in hand with the GGF, complementing its investments.
Find out more about the Technical Assistance Facility here. Develop strong project proposal through GGF technical assistance. Energy Project Developer; International development institutions and other donors; GGF Board of Directors