The Green for Growth Fund (GGF), which is advised by Finance in Motion, is now investing in renewable energy and energy efficiency in Egypt, Jordan, Lebanon, Morocco, the Palestinian Territories, and Tunisia.
The fund’s additional coverage of the Middle East and North Africa raises the number of markets it serves to 19 and is expected to attract new investors to this critical region. The expansion also affords the fund the chance to increase its impact and diversification in line with its mandate for supporting new clean energy sources and the reduction of energy use in markets seeking to spur economic growth.
The region offers vast potential: The local environment’s suitability for solar power, for example, presents a prime opportunity for investments. Due to the region’s high fossil fuel dependency, the GGF’s impact could reach 500,000 MWh a year in energy savings and an annual reduction of 150,000 metric tons of CO2 after the ramp up is complete.
The fund can rely on previous experience with adding new markets: The GGF first expanded in 2012 when it added service to Armenia, Azerbaijan, Georgia, Moldova and Ukraine, five countries in the European Eastern Neighbourhood Region. The fund has since invested in measures to cut energy consumption and emissions in all five.
GGF Chairman Christopher Knowles said: “Our expansion into the Middle East and North Africa is a product of our success in fostering proven and quantifiable impact. We offer the region expertise collected from more than five years of financing energy efficiency measures in a wide variety of geographies and markets. We look forward to the challenge, and to helping people and businesses in the region lower their environmental impact and prosper.”
The GGF invests in measures designed to cut energy use and CO2 emissions by a minimum of 20%. The fund provides financing to local partners that on-lend to enterprises and private households, and it invests directly in small to midsize renewable energy projects. The GGF’s Technical Assistance Facility maximizes the fund’s investment impact through support for capacity building at local financial institutions and partners.
For more information, see www.ggf.lu