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Green for Growth Fund (GGF)

The Green for Growth Fund (GGF) is the first specialized fund to advance energy efficiency (EE) and renewable energy (RE) in Southeast Europe, including Turkey, as well as in the nearby European Eastern Neighborhood region and in the Middle East and North Africa (MENA). Initiated by the European Investment Bank and KfW Development Bank, GGF is an innovative public-private partnership established to reduce energy consumption and CO2 emissions. GGF provides refinancing to Financial Institutions to enhance their participation in the EE and RE sectors and also makes direct investments in Non-Financial Institutions with projects in these areas. The activities of GGF are supported by a Technical Assistance Facility.

Purpose of support

Creating enabling environments and building institutional capacity

Eligible countries and regions

Southeast Europe, including Turkey, as well as in the nearby European Eastern Neighborhood region and in the Middle East and North Africa (MENA)

Eligibility criteria

GGF's investments seek to achieve a 20% reduction in energy consumption and/or a 20% reduction in CO2 emissions, by:

Refinancing Financial Institutions (local commercial banks, non-bank financial institutions such as microfinance institutions and leasing companies and other selected financial institutions) providing loans to households, businesses, municipalities and public sector for energy efficiency measures or renewable energy projects.
Providing direct financing to Non-Financial Institutions (companies, energy service companies, renewable energy companies or projects, small scale renewable energy and energy efficiency service and supply companies) that meet GGF energy saving and/or emissions targets, and comply with the technical criteria and GGF exclusion list.

Financial instruments

Grants, Market-rate loans

Decision-making information

GGF's Board of Directors, elected from a list of candidates submitted by the shareholders, exercises oversight of the fund and determines its strategic positioning and overall approach. Additionally, it supervises the service provider relationships that work for GGF on an operational level.

The Fund’s service providers are:

Advisor: Finance in Motion GmbH
Technical Advisor: MACS Management & Consulting Services GmbH
Technical Assistance Facility Manager: Finance in Motion GmbH
Depositary Bank: Banque de Luxembourg

The Board of Directors has appointed an Investment Committee comprised of specialists in the fields of finance in energy efficiency and renewable energy. The Investment Committee oversees the activities of the Investment Manager and Advisor, and is responsible for approving all investment decisions of the GGF. This ensures that GGF invests in Partner Institutions that comply with GGF's Investment Guidelines and Issue Document and follow the strategic vision laid out by the Board of Directors.

Similarly, the Technical Assistance Facility Committee is comprised of representatives of the Facility's donors and GGF's initiating shareholders, European Investment Bank and KfW Development Bank.

Finance in Motion GmbH, the Advisor and Technical Assistance Facility Manager, has 12 regional offices in the Fund’s target regions.

Monitoring and reporting procedures

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.

Steps to access

The contact points for Investees/Clients can be found here.

The lead time of a GGF investment depends on the complexity of the measure to be financed and can be processed on average within 6-12 months.

Climate objective

Mitigation

Sectors and themes

Energy efficiency, Renewable Energy

Type of support provider

Other

Type of recipient

Private sector

Fund size

At Q3 2018 the amount of funding available and the total size of the fund is EUR 470.7 million.

Co-financing required

Yes

Trustee or administrator

Finance in Motion GmbH

Contact information

http://www.ggf.lu/

Lloyd Stevens (l.stevens@finance-in-motion.com)

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Green for Growth Fund (GGF)