Green for Growth Fund (GGF)

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

1. 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.
2. 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.

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.