December 20, 2025
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Enery obtains financing for 600 MWh battery project in Bulgaria

Austria-based Enery intends to commission a four-hour battery storage system of 150 MW in central Bulgaria by the end of the first quarter of next year. The project relies on a virtual power purchase agreement (PPA) with Vitol.

Enery said it has secured a green financing package from DSK Bank AD for its flagship 600 MWh battery energy storage system (BESS) in Nova Zagora, Bulgaria. It is one of the country’s most advanced storage financing deals to date, supporting its transition toward a more flexible and renewables-powered energy system, the update reads.

The facility would have 150 MW in capability, meaning it can operate at full power for four hours. It would be the biggest BESS in Bulgaria at this moment, according to available data, though there are larger projects underway as well.

The site is in a coal region centered on the Stara Zagora lignite basin, in the central part of the country.

Virtual PPAs, optimization services are key for bankability

Enery scheduled the commissioning for March. The BESS would feature its own substation, linked to a new 33/110 kV substation on the transmission grid.

The Austria-based independent power producer revealed that it has signed an innovative virtual power purchase agreement (PPA) with Vitol.

“Sophisticated instruments such as virtual financial deals, combined with Enery Portfolio Optimization’s best-in-class physical optimization services, are now key to unlocking bankable storage projects. This transaction demonstrates how innovative commercial structures, when paired with disciplined execution, can create long-term value for both lenders and project sponsors,” Chief Commercial Officer Severin Vartigov stated.

Vitol plans many more deals with Enery

Vitol expressed confidence that there would be many more deals with Enery. The global energy and commodity trader, headquartered in Geneva, has experience in developing, owning and optimizing BESS in Australia, Europe and the United States, the update adds.

Enery operates a diversified portfolio of 566 MW, generating 766 GWh of clean electricity per year. Its development pipeline is nearing 10
GW across 10 countries in Central and Eastern Europe.

The firm also manages more than 700 MWh of battery capacity across its own and third-party systems. In Bulgaria, it is present through its Enery Element joint venture as well.

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December 10, 2025
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Brazil’s COP of Truth leaves out fossil fuels, deforestation from final deal

The United Nations Climate Change Conference COP30 was concluded with a deal to keep the world’s ambitions similar, after modest progress on some issues. In a last-minute compromise between the delegates of the wealthy, the poor and the countries most in jeopardy, the declaration from the so-called COP of Truth contains no explicit reference to fossil fuels and deforestation.

Participants at the Conference of the Parties of the UN Framework Convention on Climate Change (UNFCCC) in Belém, Brazil, acknowledged that the world is heading for a temporary overshoot above 1.5 degrees Celsius in warming, according to UN Secretary-General António Guterres.

“I cannot pretend that COP30 has delivered everything that is needed. The gap between where we are and what science demands remains dangerously wide. I understand many may feel disappointed – especially young people, indigenous peoples and those living through climate chaos. The reality of overshoot is a stark warning: we are approaching dangerous and irreversible tipping points,” he stated.

It’s difficult to reach a consensus in a period of deep geopolitical divide, Guterres pointed out. Nevertheless, he praised the final agreement for “delivering progress and showing that multilateralism works.”

Global Mutirão

The hosts nicknamed COP30, this year’s UN Climate Change Conference, the COP of Truth. Ironically, due to a last-minute compromise, or maybe consensus, the declaration contains no explicit reference to a fossil fuel phaseout and halting and reversing deforestation. They were left for separate roadmaps.

In the document, the signatories only refer to the COP28 decision, also known as the UAE Consensus, which called for transitioning away from fossil fuels.

The headline of the overarching deal adopted in Belém is Global Mutirão: Uniting humanity in a global mobilization against climate change. The Portuguese word mutirão originates from the indigenous Tupi-Guarani language and roughly means collective effort.

UN’s Stiell vows to keep up climate fight

All in all, delegates from all over the world, except the United States, left the desired decarbonization trajectory little changed. The countries most at risk of the climate disaster are generally poor. They depend on mitigation aid and investments from the wealthy part of the world.

“We knew this COP would take place in stormy political waters. Denial, division and geopolitics has dealt international cooperation some heavy blows this year,” UN Climate Change Executive Secretary Simon Stiell said at the closing.

Denial, division and geopolitics has dealt international cooperation some heavy blows this year, UN Climate Change Executive Secretary Simon Stiell said

In his view, nations chose solidarity, science, and economic common sense.

“COP30 showed that climate cooperation is alive and kicking, keeping humanity in the fight for a livable planet, with a firm resolve to keep 1.5 Celsius within reach. I’m not saying we’re winning the climate fight. But we are undeniably still in it, and we are fighting back,” Stiell stated.

The world’s top climate official noted that, for the first time, 194 countries agreed that the global transition to low greenhouse gas emissions and climate resilience is irreversible and the trend of the future, referring to a line from the deal.

COP30 pledges to triple adaptation funds by 2035

In the decision, the signatories kept the target USD 1.3 trillion per year that needs to be mobilized for climate action by 2035. USD 300 billion would be mostly grants and subsidized loans, while private financing and climate taxation dominate the rest.

The parties voted for a goal to provide three times more per year for climate adaptation from the smaller pot by 2035, instead of the initially proposed 2030 deadline. They failed to determine a figure, but it is mostly estimated at USD 120 billion per year.

One of the novelties is a pledge to promote information integrity regarding climate, which would also imply countering disinformation.

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December 3, 2025
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GGF’s new partnership powering sustainability of SMEs in Turkey

The Green for Growth Fund (GGF) has partnered with ING Leasing Türkiye, a subsidiary of ING Türkiye, through a EUR 20 million financing agreement to help small and medium-sized enterprises (SMEs) invest in cleaner, smarter, and more efficient technologies, from energy-efficient equipment and machinery upgrades to self-consumption photovoltaic systems and other low-carbon solutions.

GGF’s first collaboration with ING Leasing Türkiye is marking the start of a new strategic relationship. In addition, it is ING Leasing’s first direct access to international development financing supported by funding from international financial institutions and development finance institutions through the Green for Growth Fund, the update adds.

The deal is expected to deliver around 21,000 MWh of primary energy savings and avoid approximately 5,800 tonnes of CO₂ emissions each year, according to GGF.

The signing was attended by Onur Gul, General Manager of ING Leasing Türkiye, and Pınar Cumalı, Treasury and Financial Institutions Manager at ING Leasing Türkiye, alongside, representing GGF through its advisor Finance in Motion, the company’s Regional Director Burcu Karpuz and Investment Associate Mehmet Sena Bakar.

Luxembourg-based GGF has become one of the largest green blended-finance funds. It ended last year with EUR 1.09 billion in assets under management and an outstanding investment portfolio of EUR 1.03 billion.

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December 2, 2025
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Renewables investors are seeking tailored financing services as they add BESS, adapt to risks

Market conditions have become challenging for renewables in the CEE region, alongside uncertainties in the regulatory sphere, which calls for advanced and tailored financing solutions, according to participants in UniCredit Serbia’s workshop on navigating capital flows in the segment, including mergers and acquisitions (M&A). Investors, UniCredit’s clients, highlighted the growing importance of battery energy storage systems – and especially adding co-located storage to photovoltaics.

The renewable energy market is evolving in Central and Eastern Europe, as large players join the game and developers emerge as producers. With its surge in photovoltaic capacity and the revival in the construction of wind power plants, Romania has become a frontrunner. In neighboring Bulgaria, the first power purchase agreements (PPAs) are indicating a strong perspective, while Serbia might become more relevant soon, investors agreed at an event that UniCredit Bank Serbia organized in Belgrade.

M&A and financing trends in the region were the central topics. The idea was to have an open discussion with industry players active in the region about their investment strategies and the bank support, said the Head of Specialized Lending in UniCredit Serbia Svetlana Cerović, who moderated a panel within the conference.

A stable top line and a legal framework is the key driver for investments, with a particular emphasis on grid connections

Cerović pointed out that volatility has been on the rise for the last couple of years, after a huge wave of investments that followed the Paris Agreement and the European Green Deal. Sound and predictable regulatory framework along with stable revenues is key. To assure market flexibility and grid stability, new investments in western Europe and in the region are supported with the government programs including investments in battery energy storage systems (BESS). Thus, one of the prerequisites for the execution of future projects in local market will be certainty regarding the third auction timeline and availability of the longer term PPAs.

The participants at the workshop on navigating capital flows in renewables said a stable legal framework is the key driver for investments – grid connections especially, and permitting as a whole. On that note, developers will lean on the slowly maturing PPA market, though support from banks is necessary in the equation. Battery energy storage systems are a game changer, particularly colocated with solar parks for the optimization of the project returns.

UniCredit is strongest player in renewables financing in Serbia

UniCredit has a wide set of tailor-made project finance loans as well as a full range of services from advisory to various financing solutions, Head of Project and Structured Finance in Serbia Jelena Nestorović said.

The Italy-based bank has financed a string of major wind power and photovoltaic projects in the region, including facilities with colocated BESS, like Sunterra RE’s Galabovo in Bulgaria.

As for Serbia, it is the strongest player in the renewable energy segment. UniCredit financed six wind parks in the country, of 430 MW in total, and of which three as the sole lender. Notably, Čibuk 1 and 2 are the largest in Serbia.

UniCredit Bank Serbia is financing the country’s biggest wind power plants – Čibuk 1 and 2

Some of the participants and winners at the first two domestic auctions for contracts for difference (CfDs) are among the bank’s clients as well. Nestorović stressed that Bank is financing in total 30MW of smaller scale solar power plants .

She pointed to one of the largest industrial rooftop solar power plants in the region. UniCredit provided EUR 3.1 million facility and acts as a hedging and account bank for CWP Europe and Resalta’s project company. It built a PV system of 6 MW on a rooftop of Henkel Serbia facility in Kruševac, under an ESCO (energy service company) model.

Since 2019, the bank has participated in the financing of first waste-to-energy cogeneration plant,  located just outside of Belgrade. UniCredit is financing energy efficiency projects in the country, too.

Jelena Nestorovic UniCredit Renewables investors tailored financing services BESS adapt risks
Photo: UniCredit’s Jelena Nestorović presenting

Priority in Europe shifted from energy transition to energy security

Maria Vastola, Managing Director of UniCredit’s Energy Advisory Team covering Power & Utilities across the Group’s core countries, said valuations for renewable energy stocks on public markets are strongly down compared to 2021-2022 period and below the 3Y historical average. Independent power producers (IPPs) are factoring in a great uncertainty related to the permitting process, the regulatory framework in certain countries and the macroeconomic environment, she explained.

The bottom line is the shift in the European paradigm from the energy transition to energy security, due to geopolitical tensions, Vastola underscored. On the other hand, M&A still has good valuations, she said at the panel discussion.

Investors are focusing on operational quality, meaning high-quality assets, returns and value creation, as opposed to growing at any cost, Vastola added.

“There are more investors ready to put capital in projects and in the region. Private capital flow is a good bridge and a complementary tool for banks’ balance sheets,” she asserted and placed an emphasis on large corporations, private equity and M&A.

Scale creates efficiency, and efficiency and flexibility create value in a challenging market, Vastola stressed, highlighting investments in hybrid power plants that include battery storage. Over the past few years, corporates, traders and utilities are flocking into the renewables realm in “a big shift from big oil to big energy,” she said.

Actis to invest in infrastructure projects across region

Vice President for Energy Charles Lachapelle from Actis agreed with the other panelists about the significance of hybrid power plants and underscored that the sustainable infrastructure investment firm is mostly doing very large projects as they are much more competitive.

“Definitely, for solar, I think having a BESS is a must,” he said and added that “it goes without saying at this point.” As for batteries with wind parks, they enable flexibility for offtake, Lachapelle noted.

Actis is a growth market investor in the infrastructure and energy space, best known in the region for Rezolv Energy. In Romania, the company obtained a financing package for the first phase of its giant Vifor wind farm via PPAs with companies in the commercial and industrial (C&I) sector. The second part was secured thanks to the CfD from a renewable energy auction.

The next chapter for Actis could involve more than a billion euros

Among other investments in Romania, Rezolv has the Dama Solar project for 1.2 GW in peak capacity. It would currently be one of the biggest in Europe. The company is also active in Bulgaria.

Actis is looking at a pipeline of projects across the region, including in Serbia, Lachapelle revealed. Asked about the next auction that the country is planning, he said a wind power project in the 200 MW range would be suitable.

Lachapelle specified that the next chapter may involve over EUR 1 billion and that Actis would require support in financing.

On the subject of power purchase agreements, he said the optimal tenure is longer than ten years, with more than 70% of output contracted. “However, we’ve done cross-border PPAs. We’ve looked at solutions, in the past, combining wind, solar and BESS. We can be creative on that front,” Lachapelle stated.

Regulatory stability is essential for investor-friendly countries

While the PPAs of 70% and at least 10 years are necessary for non-EU countries, banks in the EU are more risk-hungry, according to CWP Europe’s General Counsel Jovana Rubežić.

One of the most important factors is how investor-friendly a country is, she added. “When I say investor-friendly, I mean the regulatory framework… The next thing we look at is whether we can connect our project and can the power markets absorb the power,” Rubežić said.

The rules have basically stayed the same in all of CWP Europe’s key markets, except with respect to grid connection, as transmission system operators are becoming stricter, she underscored. The company is transitioning from project development to the IPP sector, Rubežić said. She pointed to the need for support in regulatory matters, especially in sleeved PPAs, both from the government and government-owned utilities such as Elektroprivreda Srbije (EPS) in Serbia.

Structured portfolio transactions are facilitating growth for companies with multiple projects

Bankers generally seem to prefer co-located batteries to standalone ones, UniCredit’s Head of Infrastructure and Export Financing Lazar Nikolić said.

The main reason is the more diversified revenue stack, as a combination of BESS and a renewable electricity plant is effectively a single asset. With global battery storage capacity on a steep growth trajectory, banks and investors will need to look for bankable solutions to enable that.

Firstcomers in the standalone battery segment may have an extremely short payoff period ahead, but the bank needs a revenue stack

Nikolić stressed that developers need advanced capital solutions such as structured portfolio transactions, saying that they pave the way for renewables platforms to grow. Namely, firstcomers in the standalone battery segment may have an extremely short payoff period ahead, however a solid revenue stack remains key for the bank to take on risk. Countries with strong state support schemes will enable standalone BESS faster, he added.

In structured portfolio financing, the client company has different BESS, power plants and projects grouped.

“The assets can be different in terms of technology, they can be different in terms of location, they can be different in terms of offtake, in terms of also the cycle of the assets. We pack them together, bundle assets and structure debt solution on top of them, significantly enhancing portfolio diversification,” Nikolić said.

Lazar Nikolic UniCredit
Photo: UniCredit’s Lazar Nikolić presenting structured portfolio financing options

Battery storage is natural hedge for green power production

Enery, headquartered in Austria, decided at one point to add battery storage across its power plants as well as both mature and greenfield projects in Romania, Vice President for Financing Sebastian Staicu said. BESS is “a natural hedge” and it has become very cheap, he noted.

UniCredit acted as the lead bank for the company’s 230 MW portfolio of wind, photovoltaics and battery storage in the country. “That’s a smart structure where, instead of having to negotiate financing for each project, you have this wholesale facility and you just bring in new projects, which contribute to the diversification element,” Staicu said.

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December 2, 2025
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GGF ushers in new wave of energy transition investments in Western Balkans with eight deals

The Green for Growth Fund has signed a series of agreements on green lending and support for major solar power and energy storage projects throughout the Western Balkans. The new commitments, backed by an investment from KfW, will lift its green financing portfolio in the region by up to EUR 176 million.

At the EU–Western Balkans Investment Forum in Tirana, held in October, GGF announced the European Union’s EUR 20 million investment in its class C shares, via Germany’s KfW Development Bank. It was accompanied by a EUR 4 million donation to the climate action fund’s capacity building and advisory facility, its advisor Finance in Motion said.

The proceeds are set to mobilize more private capital for renewable energy, energy efficiency and climate resilience across the region, the update revealed.

The Green for Growth fund signed a series of agreements at the forum for green lending, and for financing solar power and battery projects in North Macedonia, Kosovo* and Albania.

Von der Leyen: The time to invest in the Western Balkans is now

The event was attended by European Commission President Ursula von der Leyen and Albanian Prime Minister Edi Rama.

“Your economies are already set to grow rapidly in the coming years. We established the Western Balkans Growth Plan for exactly that. The EU opens sectors of its economy for your business. Together, we work on reforms for a level playing field. And alongside reforms comes investment. The Western Balkans Growth Plan aims at doubling regional GDP in the next decade. So my message to investors today is straightforward: Do not let this opportunity pass by. The time to invest in the Western Balkans is now,” Von der Leyen said.

The commitments signed within a special segment of the Tirana conference are boosting the fund’s cumulative investments into the region to more than EUR 850 million. Earlier it provided over EUR 675 million overall in green finance in the Western Balkans in support of climate action, energy security and sustainable industry.

The new commitments are expected to avoid emissions of some 175,000 tons of CO2. It is equivalent to 400,000 barrels of oil not being burnt.

Trailblazing investments ahead in photovoltaics, BESS

The Green for Growth Fund intends to provide funding for one of the first grid-scale battery projects in North Macedonia and the Western Balkans.

Renalfa IPP is about to expand its 50 MW photovoltaic plant in Oslomej, on the site of a former coal mine, with a 200 MWh battery energy storage system (BESS). GGF has already provided debt financing for the solar installation, and the two sides signed a mandate letter for EUR 24 million for the BESS investment. It is one of the investments for the transformation of the REK Oslomej coal mine and power plant complex.

Renalfa IPP’s pioneering PV plant Oslomej on coal land will get a battery facility

GGF also signed a term sheet for Quant Renewables’ solar power project in Kosovo* for 142.2 MW in peak capacity. It comprises PV plants Tucep (98.5 MW) and Veriq (43.7 MW) on land previously designated for lignite mining.

The Green for Growth Fund would support it with up to EUR 12 million in preferred equity, complementing senior debt financing led by the European Bank for Reconstruction and Development (EBRD). Set to become Kosovo’s* biggest solar park, its estimated annual output would match the electricity needs of 63,000 households.

The facility would save an estimated 168,138 tons of carbon dioxide equivalent per year (22,529 tons prorated to GGF’s investment).

The third renewables project is HD Solar Park in Albania. Through a letter of intent, GGF expressed its goal to provide up to EUR 30 million in senior debt financing. Bindi, the developer, has envisaged 60 MW of peak capacity and a co-located 120 MWh battery system. It would be one of the first large-scale solar-plus-storage initiatives in the country.

Five new deals with financial institutions for as much as EUR 110 million in total

The partner financial institutions that signed agreements with the Green for Growth Fund will channel the financing to their clients for investments in renewables, sustainable mobility, and energy and resource efficiency in buildings and industrial production.

There are five new deals for as much as EUR 110 million in credit lines and subordinated loans.

Two credit lines for partners in Kosovo*

The KRK microfinance institution in Kosovo* aims to utilize a new credit line, of EUR 5 million, for efficiency refurbishments and retrofits of the residential sector as well as small-scale renewable energy. It would be its sixth investment with the Green for Growth Fund since establishing the partnership in 2017.

BpB, the first bank in Kosovo* founded with fully local capital, finances households and small and medium-sized enterprises. Building on a previous partnership, it will channel GGF’s senior credit line of EUR 5 million into energy efficiency and renewable energy.

It will particularly benefit SMEs, including clients in the agricultural sector seeking to upgrade energy systems or invest in low-carbon vehicles, efficient equipment and modern irrigation systems, the fund added.

EUR 95 million in total for Serbian lenders

The Green for Growth Fund signed a loan agreement with UniCredit Bank Serbia for a EUR 50 million senior credit line. The focus is on commercial-scale solar and wind power, helping decarbonize Serbia’s coal-dependent electricity system.

GGF expects it to become one of the fund’s most impactful investments, by avoiding 84,550 tons of emissions in CO2 equivalent terms – equivalent to taking 44,500 cars off the road. The fund has invested EUR 115 million in UniCredit Bank Serbia to decarbonize the country’s electricity system.

Another Serbian lender in the group is AikBank, eligible for a EUR 45 million subordinated loan. The deal is for financing renewables and energy efficiency projects of corporate clients.

The bank will additionally benefit from GGF’s technical assistance for technical due diligence and environmental and social assessments, for the implementation of green energy projects in line with the best practices, the partners stressed.

ProCredit Bank in BiH is eyeing solar power projects

ProCredit Bank in Bosnia and Herzegovina is getting a subordinated loan of up to EUR 5 million, following two such facilities in 2022 and last year. The Green for Growth Fund’s investment is for maintaining the partner’s capital position and supporting the expansion of its green portfolio. The bank especially sees opportunities in solar power, where there is significant potential for BiH to catch up with regional leaders.

“We thank our investors for their continued confidence. This kind of catalytic capital drives tangible impact in Southeast Europe and shows how aligning investment with ambitious climate goals accelerates the green transition,” Finance in Motion said.

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* This designation is without prejudice to positions onstatus and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence.
November 8, 2025
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EU waters down its 2040 climate target in runup to COP30 in Brazil

The Council of the European Union upheld the proposed 90% emissions cut target for 2040 ahead of the United Nations Climate Change Conference COP30 in Brazil, but with substantial workaround possibilities. In addition, the environment ministers failed to define the 2035 ambition, leaving the desired reduction in the amount of released greenhouse gases in a range of 66.25% to 72.5%.

Faced with declining competitiveness due to high energy prices and its strict climate and environmental standards, the EU is loosening its decarbonization goal. Following a marathon session in Brussels, the so-called Environment Council kept the desired greenhouse gas emissions reduction by 2040 at 90%, against the 1990 level, to take it to the COP30 event in Belém, Brazil. However, the competent ministers making up the body allowed several important flexibilities to avoid a last-minute stalemate.

Namely, the Council of the EU approved an updated nationally determined contribution (NDC) of the 27-member bloc and individual states to submit it at the Conference of the Parties of the UN Framework Convention on Climate Change (UNFCCC). Political leaders are gathering tomorrow, while COP30 formally lasts from November 10 to 21.

Following the 2020 NDC and its 2023 update, the new one covers the period up to 2035.

Outsourcing climate improvements instead of domestic decarbonization

On the path to eliminating net emissions by 2050, the EU is sticking with its nominal 2040 goal. On the other hand, in the latest version, the environment ministers allow “an adequate contribution of high-quality international credits in a manner that is both ambitious and cost-efficient.”

In particular, five percentage points of the 90% can be met via emission cuts promised outside the EU, and governments would be allowed to outsource a further five points, Greenpeace warned. It means they would buy carbon credits abroad as offsets.

EU is counting on purchases of other countries’ carbon credits for offsets

“The European Scientific Advisory Board on Climate Change [ESABCC] had called for emissions cuts of 90%-95% by 2040, and had stressed that this target must be for domestic reductions to climate pollution, not cuts outsourced to other countries. Environment ministers also agreed that the European Commission should reopen and water down the climate target in the case of high energy prices, a perceived negative economic impact or in light of technological advances. To reach a deal with reluctant countries, ministers also agreed to delay the start of the EU’s carbon market for pollution from cars and heating systems, extend pollution permits for heavy industry and exempt some ‘low-carbon’ fuels under the internal combustion engine phaseout,” the organization added.

The carbon market in question is the planned Emissions Trading System 2 (EU ETS 2). The Environment Council proposed to delay its establishment by a year, until 2028, and work on measures for a smooth launch.

“According to the ESABCC, only 16% of offsets have delivered genuine emissions reductions. But if they were high-quality offsets, they would be costly, and relying on them would divert investment from transforming the EU’s own industries, economy, and workers,” World Wide Fund For Nature (WWF) pointed out.

Indicative range for 2035 goal entirely below required efforts

The protracted discussions between the EU’s national governments also delayed the announcement of the EU’s indicative climate target for 2035, under the Paris Agreement. It is supposed to be submitted at the UN Climate Change Conference COP30.

“Ministers failed to agree a firm 2035 target, instead keeping a previously agreed range of 66.25% to 72.5% emission cuts, even the upper end of which is inconsistent with a credible pathway to the proposed 90% cut for five years later, undermining the EU’s position as a climate leader at COP30,” Greenpeace stressed.

Climate-competitiveness-independence tradeoff

The European Parliament’s Committee on Environment, Public Health and Food Safety (ENVI) is expected to discuss the matter soon. After a plenary vote, the institution would negotiate with the Council of the EU and European Commission.

“We need climate, competitiveness and independence. All three are crucial and going forward we need to ensure that one doesn’t come at the expense of the other. This morning, the environment and climate ministers of all member states reached a pragmatic, ambitious deal which ensures that,” said European Commissioner for Climate, Net-Zero and Clean Growth Wopke Hoekstra.

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August 8, 2025
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Slovenia sells Europe’s first sustainability bond, worth EUR 1 billion

Slovenia accessed the international markets with its inaugural sustainability-linked bond, oversubscribed by more than 6.5 times. The interest payable can grow or drop by 50 basis points depending on the country’s progress in cutting greenhouse gas emissions. It is the first-ever sustainability-linked bond issue from a European sovereign, the Ministry of Finance pointed out.

Bankers and fund managers flocked around the first sustainability-linked bond that Slovenia offered in the market. Demand reached over 6.5 times more than the EUR 1 billion available, with a 10-year maturity. It is also the first-ever sustainability-linked bond issue from a European sovereign, the Ministry of Finance pointed out.

The country’s Sustainability Bond Framework is also in line with the Green Bond Principles of the International Capital Market Association – ICMA, and it takes into account the Green Bond Standard of the European Union. The proceeds from sustainability bonds are for financing or refinancing eligible green or social projects.

If Slovenia doesn’t achieve a 35% cut in total greenhouse gas emissions by 2030, relative to the 2005 baseline, the interest payable on the note will increase by 50 basis points, commencing nine years after the settlement date. If the emissions cuts surpass 45%, the rate will go 50 points lower, the documentation shows.

High demand resulted in a drop in the price spread from 70 to 61 basis points above the benchmark

The initial price guidance was at 70 basis points above the mid-interest rate swap as benchmark. Strong demand, including EUR 435 million in joint lead managers (JLM) interest, slashed the spread to 61 points. The note has a 3.125% fixed-rate coupon, reoffer yield of 3.155% and reoffer price of 99.746%, the ministry revealed.

As for the geographical distribution of the buyers, 23% are in the United Kingdom or Ireland, 20% is in the region comprising Belgium, Netherlands and Luxembourg, and 15% are from Germany, Austria or Switzerland. Next is Southern Europe, with 12%, followed by Slovenia’s 11%, a 9% Nordics share and 5% for France.

Asset managers amounted to 54% of the total sum. Central banks and other official institutions, at 18%, were just barely ahead of other banks (17%). Insurance and pension funds purchased 5% and hedge funds now hold 4% of the issue.

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July 23, 2025
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Germany supports Serbia in clean energy supply, environmental protection

The Republic of Serbia and Germany’s KfW Development Bank signed a loan agreement on July 18 for EUR 135 million for the second phase of the credit program Green Transition Development Policy Operation (DPO II).

The signatures underscore the joint activities by Germany and Serbia aimed at a climate-compliant and socially just energy transition, said Chargés d’Affaires ad interim Carsten Meyer-Wiefhausen from the Embassy of the Federal Republic of Germany in Serbia. “We will continue to be with Serbia on this path and support its reform efforts,” he stressed.

Within the financing for the reforms, the World Bank, French Development Agency (AFD) and the German KfW Development Bank are supporting the Republic of Serbia in conducting its ambitious reform agenda. The goal is to accelerate the transition to energy from clean sources and align with EU standards in environmental protection and climate.

Series of reforms through DPO II

Several successful reforms have been materialized within DPO II, among which:

  1. Promoting investments that are acceptable in environmental and climate terms: Public investments are graded under environmental criteria and with regard to the risk of natural disasters, and with models developed solely for the purpose. The citizens of Serbia benefit from the government’s more sustainable investment decisions.
  2. Enhanced transparency in the public budget: The Government of the Republic of Serbia has committed to publishing information on the execution of the public budget, not only at the end of the fiscal year, but also during the year. It improves the transparency of public expenditures, primarily concerning investments in environmental and climate protection.
  3. Affordable energy prices: The Government of the Republic of Serbia has rolled out temporary targeted subsidies for households with low income, like citizens with low pensions. The share of households receiving such aid has grown from 2.7%, registered in 2021, to last year’s 8%.
  4. Improvement in waste disposal: Aligning with EU standards brings a better approach to sanitary landfills, namely from 42% (2021) to last year’s 50%. The citizens of Serbia benefit from improved waste disposal and a cleaner environment.
  5. Prepared for CBAM: Since this year, large industrial facilities and power plants report their CO2 emissions in line with EU standards. That way Serbia is more prepared for the upcoming full implementation of the European Carbon Border Adjustment Mechanism (CBAM) for carbon prices. For instance, the country would be able to price CO2 emissions and charge them.

Financing reforms within climate partnership

Germany’s contribution to financing reforms is an integral part of Germany’s climate partnership with Serbia and the entire Western Balkans. The purpose of the partnership is to support Serbia’s work on achieving its national climate goals and adapting to climate change. The key goal of the partnerships is for the transformation that is necessary to meet climate goals, in the interest of Serbian citizens, to be socially just, a just transition.

This year, Serbia and Germany are celebrating the 25th anniversary of their development cooperation. In the meantime, KfW financed projects worth EUR 2.5 billion in Serbia.

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July 16, 2025
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Electrica sells green bonds for EUR 500 million amid record demand

Electricity supplier and distributor Electrica listed its first green bonds on the Luxembourg Stock Exchange. It was the largest issuance of its kind among Romanian companies, excluding financials.

Electrica, in which the Romanian Government controls a stake of just under 50%, issued green bonds worth up to EUR 500 million. It is using the proceeds to finance and refinance its projects, mainly for green energy production and energy storage.

The senior unsecured green bonds, maturing in five years, are now listed on the Luxembourg Stock Exchange. Admission to trading on the Bucharest Stock Exchange is estimated to take place at the beginning of August, Electrica said.

The company’s core activities are electricity distribution and supply and energy services, but it is expanding into renewables and battery storage.

Pricing reaches 2.3 percentage points above benchmark rate

Credit appraisal agency Fitch has assigned the 4.375% senior unsecured green notes a BBB- rating. It is the lowest investment grade. The projects will have a limited connection to Electrica’s 100%-owned distribution and supply subsidiaries Distribuție Energie Electrică Romania (DEER) and Electrica Furnizare, the note adds.

Electrica targets 1 GW of installed renewable energy capacity by 2030 alongside the deployment of 900 MWh of energy storage

The company’s inaugural debt securities were priced at a yield of 4.566%, according to a regulatory filing. It was 2.3 percentage points above the benchmark mid-interest rate swap. The demand from investors at the final price exceeded the supply by more than 11.5 times, marking a record oversubscription in bond issuances of Romanian companies, Electrica pointed out.

Moreover, it was the largest green bond issuance in Romania excluding financial institutions. Electrica targets 1 GW of installed capacity by 2030 alongside the deployment of 900 MWh of energy storage.

Electrica grows market capitalization by one fifth this year

Banca Comercială Română (member of Erste Group), BNP Paribas, Citi, ING, J.P. Morgan and Raiffeisen Bank International were the joint global coordinators and joint bookrunners in the transaction, while BT Capital Partners, IMI-Intesa Sanpaolo, Société Générale and UniCredit were joint bookrunners.

Electrica has EUR 1.06 billion in market capitalization. Its shares surged 21.1% since the end of last year.

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July 15, 2025
by in News

Impact Report 2024: GGF grows direct lending, committed to energy transition, energy security

In its Impact Report 2024, the Green for Growth Fund outlined how it powers the green transition across Southeast Europe, the Caucasus and beyond – from repurposing coal sites and decarbonizing industries to strengthening energy security and building climate resilience. It ended last year with EUR 1.09 billion in assets under management and an outstanding investment portfolio of EUR 1.03 billion.

Luxembourg-based GGF has become one of the largest green blended-finance funds. It marked its 15th anniversary in 2024 by passing the EUR 1 billion mark in its portfolio.

“To date, we have delivered over EUR 2 billion in green finance through 70+ active financial institutions, companies, and infrastructure projects. This is impact on a systematic level and reflects the dedication of our partners, teams, and investors. We delivered many landmark projects as we continue to grow our direct lending,” the fund said in its 2024 Impact Report: Breaking the billion for lasting green impact.

GGF highlighted its role in transforming legacy energy systems into clean energy sites in North Macedonia. “We are also investing in corporate decarbonization across resource-intensive sectors in Turkey, including the country’s second-largest retail chain. Working with our financial institution partners, Ukraine’s energy security – and the security of the wider region – remains our focus,” the update reads.

Driving the energy transition and strengthening energy security is an urgent task, the fund said and stressed that its commitment remains strong. It ended 2024 with EUR 1.09 billion in assets under management and an outstanding investment portfolio of EUR 1.03 billion.

Energy-intensive sectors in region can decarbonize

The cumulative volume invested in partner lending institutions has reached EUR 2 billion. GGF is active in 18 countries.

“Passing the EUR 1 billion mark brings greater responsibility. We must continue to show the world that energy-intensive sectors in the region can decarbonize and renewables can lead to energy stability and security,” Chairperson of the Board of Directors Simon Gupta stated.

Headline figures include 1.4 million tons of carbon dioxide emission savings per year, which is the equivalent of taking 949,000 cars off the road. GGF supported 1.76 GW of renewable energy capacity through 2024, which is a whopping 36.4% more than one year before. Its activity resulted in 2.16 million cubic meters of water saved or treated per annum, which translates to 865 swimming pools.

GGF strategically manages impact through supporting measures that mitigate climate change and promote sustainable economic growth in Southeast Europe including Turkey, the European Eastern Neighborhood Region, and the Middle East and North Africa.

From coal pit to solar plant

Recognizing the need for energy independence, the Western Balkans are prioritizing projects that support the green energy transition, GGF pointed out.

“But financing is essential to help countries shift to domestic and clean renewable power. We arranged EUR 25.7 million in project financing for a 50 MW solar power generation project on the site of the former Oslomej coal mine in Kičevo, North Macedonia,” it added.

GGF arranged a EUR 25.7 million package for a PV plant on former coal mining land in the REK Oslomej complex in North Macedonia

The region’s reliance on legacy coal-fired power plants has resulted in outages, shortfalls, closures and volatile energy costs, GGF warned. “Governments recognize this and are increasingly prioritizing sustainable power projects aimed at reducing fossil fuel imports, lowering costs and stabilizing energy supply. To fulfill this ambitious agenda, they need support,” the fund stressed.

Oslomej is GGF’s second project finance transaction in North Macedonia, following its investment as a minority shareholder in the 36 MW Bogoslovec wind farm in 2021.

“Our investment in the Oslomej solar project underscores our commitment to North Macedonia’s green energy transition. By reducing reliance on fossil fuels and enhancing energy security, this project aligns with our mission to mitigate climate change and promote sustainable energy solutions,” said Fund Director for GGF at Finance in Motion Borislav Kostadinov.

Of note, he was one of the keynote speakers at this year’s edition of Belgrade Energy Forum (BEF 2025), organized by Balkan Green Energy News. Finance in Motion is GGF’s advisor.

Future-proofing Turkish businesses

The fund provided USD 26 million to Sanko Tekstil, one of the largest yarn producers in Turkey. It financed the full cost of a 20 MW rooftop photovoltaic system and partially covered the construction of a fiber recycling facility in Gaziantep.

Meanwhile, a USD 18 million investment into A101, the country’s second-largest retail chain, is decarbonizing store operations across 81 cities via a large-scale solar installation. It supported a 30 MW solar power project, expected to meet 10% of the company’s electricity needs.

Embedding sustainability

GGF complements its financing with advisory and capacity-building services, and risk-management support. It includes environmental and social due diligence, as well as monitoring, to keep projects aligned with international best practices.

The advisory and capacity-building activities in 2024 focused on embedding sustainability and advancing green finance across partner institutions.

A key highlight was the completion of four Deep Greening Mainstreaming projects, which supported financial institutions in developing strategies in the environmental, social, and governance (ESG) sector, green products, and internal sustainability structures.

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