- Loan of up to €2mn to AFK for investments in residential energy efficiency in Kosovo
- EU-funded cashback incentive under Green Economy Financing Facility
- GEFF supported by EU, Austria and Western Balkans Investment Framework
More homeowners in Kosovo will be able to improve the energy efficiency of their households thanks to a new €2 million credit line extended by the European Bank for Reconstruction and Development (EBRD) to the Agency for Finance in Kosovo (AFK).
AFK will offer financing for investments in energy efficiency measures such as insulation, energy-efficient windows, heat pumps and solar panels. After the successful implementation of these measures, borrowers will be eligible for cashback of up to 20 per cent of their total investment thanks to funding from the European Union (EU).
The loan to AFK is provided under the Green Economy Financing Facility (GEFF), a programme supporting energy-efficient ways to create a greener and more sustainable economy. In the Western Balkans alone, the programme has a volume of €135 million. It is supported by the EU, the Western Balkans Investment Framework (WBIF) and the Austrian Federal Ministry of Finance, and is part of the Regional Energy Efficiency Programme (REEP) for the Western Balkans.
Neil Taylor, EBRD Head of Kosovo, said: “Kosovo is one of the most energy-intensive countries in Europe. We are pleased to expand the GEFF programme here to help households improve their energy efficiency and reduce their bills. The facility will also support local jobs and boost the green recovery. Together with our partners the EU, Austria and WBIF we will continue to improve energy efficiency in the residential sector to reduce air pollution and greenhouse gas emissions.”
Vahdet Anadolli, CEO of AFK, said: “We are very proud of our history of eight years of joint projects and successful cooperation with the EBRD. During this period, AFK has served more than 2,000 beneficiaries, with €4.5 million in investment, creating an important impact on energy saving in Kosovo in line with our social and environmental objectives.”
To date, the GEFF in Kosovo has reached more than 960 households and provided loans of more than €7.7 million for individual projects, via partner financial institutions, that have contributed to savings exceeding 9,010 MWh of energy and a reduction of more than 3,100 tonnes of CO2 emissions per year. The most frequently financed measures are windows and doors, insulation, biomass boilers and heat pumps.
To date, around 7,900 households in the Western Balkans have improved their energy efficiency through the GEFF programme, with investments in projects that have contributed to a reduction of more than 11,000 tonnes of CO2 emissions per year, equivalent to taking 7,000 cars off the road.
The EBRD has invested €528 million in Kosovo since it began operations there in 2012. The Bank’s strategic priorities in Kosovo are promoting the green economy, supporting the competitive development of the private sector and boosting regional integration.