New Fund Aims to Cut Balkan Carbon Footprint

The Southeast Europe Energy Efficiency Fund, SE4F, with 95 million euro, has been established by the European Investment Bank EIB, Kreditanstalt für Wiederaufbau, KfW, the European Commission and the European Bank for Reconstruction and Development, EBRD.

The EIB, KfW and the EBRD are each investing 25 million euro and the Commission is providing close to 20 million euro. The founding institutions eventually aim to increase the fund’s size to 400 million euro by attracting additional funds from public and private investors.

“This initiative aims to expand the availability and access to sustainable energy finance in the Western Balkans and Turkey, boosting the economic and environmental development in the region,” said the EBRD in a statement.

“This project will help businesses and households in south-eastern Europe to reduce energy wastage, cut costs, and lower their carbon footprint,” it added.

SE4F will invest in energy efficiency and renewable energy projects especially undertaken by small and medium-sized enterprises and households in Albania, Bosnia, Croatia, Macedonia, Montenegro, Serbia and Turkey, helping the region cut its energy intensity and boosting energy security.

The Fund’s financing will be provided mainly through loans to financial institutions, which will on-lend to businesses and residential customers.

A part of the SE4F’s funds will be also available for direct investment in specialist energy service companies, energy efficiency service and supply companies, and renewable energy projects.