The
German Federal Ministry for Economic Cooperation and Development (BMZ) is
investing 9.0 million euro ($10.2 million) in the Green for Growth Fund,
Southeast Europe (GGF) to be used to finance energy efficiency and small-scale
renewable energy projects for businesses and households within the Southeast
Europe and the European Eastern Neighbourhood regions, GGF said on
Wednesday.
The GGF’s target countries, including Albania, Bosnia and
Herzegovina, Croatia, FYROM, Kosovo, Montenegro, Serbia, Turkey, Armenia,
Azerbaijan, Georgia, Moldova and Ukraine, are characterised by rising energy
demand and a mostly obsolete energy infrastructure; in most countries energy is
produced primarily from coal and gas-fired power plants, GGF said in a press
release.
The burning of fossil fuels has a negative impact on the
environment, GGF stressed, adding that they also usually have to be imported at
high cost.
The BMZ has been a partner of the GGF since its inception in
2009 and so far has invested a total of 31.5 million euro in the
fund.
The Green for Growth Fund, Southeast Europe is dedicated to
enhancing energy efficiency and fostering the use of renewable energy sources in
Southeast Europe and in the nearby European Eastern Neighbourhood region. It
provides refinancing to financial institutions for on-lending to enterprises and
private households seeking to finance energy efficiency projects. The fund also
invests directly in small to medium-scale renewable energy projects.