The European Bank for Reconstruction and Development is sustaining its drive on green finance by advancing funds to Komercijalna Banka AD Skopje, the largest commercial bank in North Macedonia. Under GFF, this €4 million loan is will finance small and medium-sized enterprises in North Macedonia for financing investments in renewable energy and energy efficiency technologies. This initiative falls under efforts to speed up the green and inclusive economic transition in North Macedonia’s private sector.
Green Finance Facility Enables Sustainable Growth
The Green Finance Facility is a collaborative initiative in which the Joint SDG Fund, the government of North Macedonia, the EBRD, and the local financial institutions are committing funds, while the execution is led by the UNDP, IOM, UNECE, the EBRD, and the Government of North Macedonia. It offers affordable green finance options to underserved SMEs, individuals, and households, enabling them to invest in solutions that abate greenhouse gas emissions and air pollution.
It gives Komercijalna Banka financial muscle as it lends money to companies focused on renewable energy as well as those working with energy efficiency in local environments. The SMEs thus will be enabled to keep their operating costs down thereby improving their sustainability while promoting long-term environmental benefits as it supports the projects.
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Commitment to Green Transition and Climate Action
Fatih Turkmenoglu, Head of the EBRD Office in North Macedonia, said, “This loan under the Green Finance Facility demonstrates our commitment to empowering small and medium-sized enterprises in the country to adopt renewable energy and energy efficiency technologies.
He added, “I am very happy that Komercijalna Banka is joining this commitment by providing loans through the GFF for the first time. By facilitating access to sustainable financing, we aim to drive the green and inclusive economy transition, enabling businesses to grow responsibly while contributing to the fight against climate change.”
Not only will the financing via this scheme enable SMEs to draw much-needed capital for green investments but will also spur North Macedonia toward broader goals in its environment. A rise in the use of renewable energy sources and higher levels of energy efficiency will support a marked decrease in emissions of greenhouse gases and particulate matter in the air-a step towards attaining all climate goals of the country.