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Sparkasse Bank becomes the first partner of the Green Finance Facility in North Macedonia -
The Sparkasse will retrocede €7 million to SMEs for green energy projects -
EBRD, UNDP, Joint SDG Fund and Government of North Macedonia to provide combination of loans and grants
Bank Sparkasse in Skopje became the first partner financial institution in North Macedonia to participate in the innovative green financing mechanism (GFF).
GFF is a pilot collaboration between the European Bank for Reconstruction and Development (EBRD), the United Nations and the country’s government.
The EBRD’s contribution includes credit lines of up to €30 million for participating local banks and leasing companies. This contribution will be complemented by grant funds of up to US$4.5 million, including up to US$3 million in grant funds guaranteed by the Joint SDG Fund and the Government of Macedonia. North for investment incentives for final borrowers, and up to US$3 million 1.5 million technical cooperation grant funds guaranteed by the SDG Common Fund.
The combined funds will be provided to local SMEs. SMEs will be eligible for 10 percent grants for successful investments in renewable energy projects or combining energy efficiency and renewable energies or 5 percent grants for projects involving exclusively energy-saving technologies. Through the technical cooperation component, the GFF will also help the banking sector increase its capacity to finance green economy projects.
As part of gender additionality, participating banks will also engage in an EBRD-led policy dialogue with the Central Bank of North Macedonia to promote women’s financial inclusion and a more gender-responsive financial sector.
The EBRD is a major institutional investor in North Macedonia. To date, it has invested around 2.7 billion euros in almost 180 projects.
The Green Finance Mechanism is a joint United Nations program financed by the SDG Common Fund, the Government of North Macedonia, the EBRD and local partner financial institutions, jointly implemented by UNDP, IOM, ECE -UN, EBRD and the Government of North Macedonia with the support of the United Nations Resident Coordinator in North Macedonia.
This joint program aims to provide access to affordable green financing to SMEs and target groups of marketable but underserved individuals/households for investments in renewable energy and energy efficiency solutions, which will contribute to the reduction of emissions greenhouse gases and air pollution in the country.