Project summary:

The Green Finance Facility UN Joint Programme is pioneering an innovative financial mechanism that provides access to affordable finance for small and medium-sized enterprises (SMEs) and underserved households in North Macedonia. It aims to stimulate investments in renewable energy and energy efficiency to accelerate the adoption of green solutions, enhance innovation, reduce energy use while contributing to better air quality and combating climate change.

Duration
May 2022 – April 2027

UN Implementers
• United Nations Development Programme (UNDP)
• International Organisation for Migration (IOM)
• United Nations Economic Commission for Europe (UNECE).

Estimated Financing
USD 46.7 million co-financed by the Joint SDG Fund (USD 8.0 m grant), Government of North Macedonia (USD 0.8 m. grant), EBRD (USD 31.4 m. credit) and financial institutions (USD 6.5 m. credit).

Key Partners
The Government of North Macedonia, European Bank for Reconstruction and Development (EBRD) and local financial institutions in North Macedonia.

Financing 

The UN Joint Programme "Green Finance Facility to Improve Air Quality and Combat Climate Change in North Macedonia" is financed by the United Nations Joint SDG Fund; its contributors include the European Union and the governments of Sweden, Spain, Netherlands, Norway, Switzerland, Germany, Denmark, Ireland, Italy, Luxembourg, Republic of Korea, Saudi Arabia, Poland, Portugal, Monaco, and private sector. The Government of North Macedonia and  the European Bank for Reconstruction and Development (EBRD) are also financially supporting the Programme. Implementation is led by UNDP North Macedonia, in partnership with the Government of North Macedonia, EBRD, IOM, UNECE and local financial institutions. 

Financial Institutions – Partners:

For SMEs:

The European Bank for Reconstruction and Development (EBRD), in partnership with local financial institutions, supports firms SMEs  in accessing green financing through following FIs:

1. ProCredit Bank A.D. Skopje
2. Sparkasse Bank A.D. Skopje
3. Sparkasse Leasing A.D. Skopje
4. Komercijalna Bank A.D. Skopje

Contact: lovre.ristevski@ebrdgeff.com

For Households:

Loans are available for female-led households, single parents, Roma communities, households with a person with a disability, employees affected by COVID-19, remittance recipients, and returning migrants, through:

1. TTK Bank A.D. Skopje
2. Silk Road Bank A.D. Skopje
3. Saving house Mozhnosti A.D. Skopje  

Contact: gff@undp.mk |  gff2.aplikacija@gmail.com

Activities:

The Green Finance Facility will support loans to households and SMEs to adopt renewable and efficient energy solutions. To encourage uptake of these loans, it will also offer technical assistance and performance-based payments to the borrowers. The loans will be distributed to households and businesses via local financial institutions (Fis), with priority given to women, single-parent households, as well as households receiving remittances or containing returning migrants.

To best serve both households and small and medium-sized businesses (SMEs), the Facility will use a slightly different structure for each. 

• For SMEs, the Facility provides a credit line to participating FIs, which on-lends to SMEs at a target Internal Rate of Return of 3% -5%. The loans are complemented with technical assistance (in total of US$ 3.9 million) and ex-post, performance-based payments (PBPs) of up to 10% (5% for energy efficiency and 10% for renewable energy and combination with energy efficiency) of the loan amount. 

• For households, the Facility will provide US$ 6.5 million in loans financed from participating FIs’ own capital, with an expected IRR of 5 - 6%. This will be complemented by PBPs equal to up to 30% of the loan amount.

   

Related Materials:

New "green" loan options for SMEs and underserved individuals in North Macedonia

UNDP North Macedonia and EBRD partner to implement the Green Finance Facility (GFF) project

Green Financing Facility to Improve Air Quality & Combat Climate Change in North Macedonia