EBRD and EU Support Montenegro’s Green Energy Efficiency Investments

EBRD and EU Support Montenegro’s Green Energy Efficiency Investments

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD), in partnership with the European Union (EU) and Austria, is bolstering energy efficiency investments in Montenegro by extending a €2 million loan to NLB Banka a.d. Podgorica, aimed at providing financing to residential homeowners. This initiative is facilitated through the Green Economy Financing Facility (GEFF), which promotes investments in eco-friendly technologies and solutions for privately owned residential buildings. Homeowners receiving support can identify and purchase energy-saving equipment like insulation, windows, heat pumps, and solar panels, ultimately reducing greenhouse gas emissions, cutting energy expenses, and enhancing their quality of life. Additionally, they may receive technical assistance and incentive payments of up to 20% of the loan value upon successful equipment installation. The project receives funding from the EU and bilateral donors via the Western Balkans Investment Framework (WBIF) under the Regional Energy Efficiency Programme (REEP). The Austrian Federal Ministry of Finance is contributing additional funds for technical assistance. The EBRD has a substantial investment presence in Montenegro, with €800 million invested in 86 projects in the country to date.

(PRESS RELEASE) LONDON, 14-Nov-2023 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD), with the support of the European Union (EU) and Austria, is boosting energy efficiency investments in Montenegro by providing a loan of €2 million to NLB Banka a.d. Podgorica for on-lending to residential homeowners.

The funds are provided through the Green Economy Financing Facility (GEFF), which supports investments in high-performance green technologies, materials and solutions for privately owned residential buildings. Beneficiary homeowners receive assistance in identifying and purchasing energy-saving equipment, such as insulation, windows, heat pumps and solar panels that will reduce greenhouse gas emissions, cut energy costs and improve their quality of life. They can receive technical assistance and receive incentive payments of up to 20 per cent of the loan value upon successful installation.

The EU and bilateral donors are providing funds through the Western Balkans Investment Framework (WBIF) as part of the Regional Energy Efficiency Programme (REEP). The Austrian Federal Ministry of Finance is providing additional funds for technical assistance.

Remon Zakaria, EBRD Head of Montenegro, said: “We are delighted to boost green investment opportunities for homeowners across the country, together with our commercial and institutional partners. Residential buildings account for a significant amount of CO2 emissions – that is why our funds will make a meaningful positive difference to Montenegrin citizens, their energy costs and the country’s environment.”

Yngve Engstroem, Head of Cooperation for the EU Delegation to Montenegro, said: “Investing in energy efficiency is a win-win. It improves the environment, it reduces the costs of heating in the winter and cooling in summer, buildings increase in value and provide more comfort, and the savings will pay back the loan. We are glad to support beneficiaries’ private investments with non-refundable EU money to make the programme even more attractive for citizens.”

Martin Leberle, President of NLB Banka a.d. Podgorica, said: “We are happy to work with our institutional partners to provide our customers with these new funds. This will ensure that residential homeowners have the necessary finance to make important investments, with a positive impact on our environment. It will provide them with more comfortable homes, while we also build together a greener country.”

The EBRD is a major institutional investor in Montenegro. To date, it has invested €800 million in 86 projects in the country.

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SOURCE: EBRD