Luxembourg, EIB sign investment of EUR 5mln to Green for Growth Fund at COP24

Founded in late 2016, the Luxembourg-EIB Climate Finance Platform aims to fund high-impact climate action projects with strong environmental and development benefits, thereby acting as a catalyst for additional financing.

During COP24 taking place in Katowice, Poland, Luxembourg-EIB Climate Finance Platform (LCFP) officially signed an investment of EUR 5 million to the Green for Growth Fund (GGF) to support the fund's lending for energy efficiency, resource efficiency and renewable energy measures in the Middle East and North Africa (MENA) region. Serving as a risk cushion, this investment helped the fund to attract further private investors, thus enhancing its outreach and impact.

This operation was first committed at a ceremony held during COP 23, the 2017 UN Climate Change Conference in Bonn, Germany. Since then, GGF's outstanding portfolio in the MENA region has grown stronger to over EUR 110 million spread across 14 partner institutions and has generated cumulative sub-loans of over EUR 60 million. This existing portfolio is yielding estimated annual primary energy savings of 460,000 MWh and CO2 emission reductions of around 90,000 metric tons. Part of the portfolio has been developed thanks to the planned Luxembourg-EIB Climate Finance Platform support, and it already exceeds the targets set at the time of the initial announcement in Bonn.

Founded in late 2016, the Luxembourg-EIB Climate Finance Platform aims to fund high-impact climate action projects with strong environmental and development benefits, thereby acting as a catalyst for additional financing. The platform contributes to Luxembourg's international commitment to implement the Paris Agreement and is in line with the EIB's Climate Strategy.

GGF Chairman Olaf Zymelka stated: "EIB being one of the initiators of GGF, has been a tremendous support throughout our journey and we are grateful to them and the Luxembourg government to choose GGF as the very first investment of this joint initiative. This new partnership will enhance our capacity to respond to the growing demand for energy and resource efficiency measures and the development of renewable energy in MENA, and we are eager to contribute further to a green future for the region."

Jonathan Taylor, EIB Vice-President responsible for climate action and environment said: "The first pillar of EIB's Climate Strategy focuses on reinforcing the impact of EIB climate financing. That's why I am very pleased that following last year's announcement at COP 23, we have now finalised our investment in the Green for Growth Fund (GGF). The EIB has played a key role in the development of the GGF and remains one of the fund's leading partners. We believe that this joint support under the Luxembourg-EIB Climate Finance Platform is an important signal of confidence in the fund's potential going forward and we hope our commitment will attract additional finance from third parties, including from the private sector.

Pierre Gramegna, Luxembourg Minister of Finance, said: "For Luxembourg, being an important financial centre, unlocking private finance is a key objective. Luxembourg is thus very pleased to partner with the EIB on the Green For Growth Fund."