EBRD to boost green buildings in North Macedonia

• EBRD €2 million loan to Sparkasse Bank Makedonija for green buildings
• Investments in technology to boost energy efficiency and generate savings
• GEFF supported by EU, Austria and Western Balkans Investment Framework

A €2 million loan by the EBRD to Sparkasse Bank Makedonija will support investments in high-performance green technologies in privately-owned residential dwellings or buildings in North Macedonia.

Sparkasse Bank Makedonija will on-lend funds to private borrowers planning to invest in technologies, materials and solutions to improve energy efficiency. The EBRD financing comes under the Green Economy Financing Facility Programme (GEFF).

The building stock in North Macedonia is in urgent need of refurbishment and the introduction of insulation, for example, is expected to lower costs and improve comfort.

Additionally, the EBRD is extending a €3 million mortgage loan to Sparkasse Bank Makedonija for on-lending to private borrowers for housing purposes. This is the second loan the EBRD is extending to support retail lending by a North Macedonia’s bank. Combined with the loan for energy-saving improvements in people’s homes, financing of mortgages contributes to expanding lending to residential sector.

GEFF in North Macedonia is part of the EBRD’s €85 million Western Balkans Green Economy Financing Facility, launched in 2017. The programme is a joint initiative by the European Union (EU), the Austrian Federal Ministry of Finance and beneficiary countries cooperating under the Western Balkans Investment Framework (WBIF).

It is implemented under the umbrella of the Regional Energy Efficiency Programme for the Western Balkans (REEP Plus), funded by the EU and implemented in partnership with the Energy Community Secretariat. REEP Plus has also delivered policy support for harmonising the country’s law on energy efficiency and regulations for energy efficiency in buildings with the relevant European directives.

The EBRD is a major institutional investor in North Macedonia. To date, it has invested more than €2.0 billion in 129 projects in the country. Supporting green energy is a priority for the EBRD as it addresses one of the country’s most pressing challenges.