The Green for Growth Fund, an investment fund advised by Finance in Motion, has attracted €4 million in dedicated funding from the initiative Climate Action in the Middle East North Africa (CAMENA). Combined with €5 million in support from the European Investment Bank through the Luxembourg-EIB Climate Finance Platform in 2018, the GGF has increased its capacity to leverage further private investments for green lending in the region.
Courtesy of EIB
Created with the support of the UK Department for International Development, CAMENA is managed by the EIB as an initiative to help countries in the Southern Mediterranean fight climate change by funding targeted climate initiatives and vehicles, like the GGF. The EIB is also supporting the GGF’s efforts to drive climate action by providing additional funding through the Luxembourg-EIB Climate Finance Platform. The investments will be used to strengthen the GGF’s “C-shares”, a special risk-absorbing layer that enables the fund to attract private capital – which is crucial for channeling higher volumes of investment to achieve maximum impact.
The GGF has seen remarkable growth in its MENA investment portfolio, which increased in volume by over 50 percent in 2018 to cross the €133 million mark. The GGF leverages public and private capital to fund pioneering green energy initiatives such as the Phoenix 50MW sub-project of the Benban Solar Park in Egypt, the largest solar farm in the world.
“These kinds of initiatives enable funds like the GGF to become a testament to the power public capital can wield in engaging private capital,” said GGF Chairman Olaf Zymelka.
Lloyd Stevens, Director at GGF advisor Finance in Motion, added: “The MENA region is highly susceptible to climate change on account of its water scarcity, high dependence on climate-sensitive agriculture, and concentration of population and economic activity in urban coastal zones. Therefore, we consider it crucial for the GGF to have a positive environmental impact in the region by promoting energy and resource efficiency, and the development of renewable energy sources.”
Photo: Chairpersons of the GGF Investment Committee and Technical Assistance Committee visiting the GGF-supported Phoenix subproject at the Benban Solar Park, Egypt.