EBRD, EU and Japan boost residential energy-saving investments in Kosovo

The European Bank for Reconstruction and Development (EBRD) is stepping up its support for green finance with new funds for Banka për Biznes in Kosovo.

The EBRD’s loan of up to €4 million under the Green Economy Financing Facility (GEFF) will boost energy-efficiency investments for homeowners, housing collectives, producers and service providers. The project is co-financed by the European Union (EU) and Japan.

This loan, the first for Banka për Biznes under the GEFF, will support high-performance green technologies, materials and solutions for privately owned residential dwellings and buildings. Investments in energy-saving equipment, such as insulation, windows, heat pumps and solar panels, will reduce greenhouse gas emissions, cut energy costs and improve residents’ quality of life. In addition to loans, homeowners will receive incentive payments of up to 20 per cent of the loan value upon successful installation.

Banka për Biznes will receive technical assistance to help it establish a new financing model tailored to green lending in the residential building sector. The support will also be offered to wider stakeholders, such as construction companies, vendors and producers of green technologies, in order to advance the green transition of the residential sector as a whole.

The loan facilitates the Bank’s Green Economy Transition approach and will be supported by the Japan-EBRD Cooperation fund and the EU through the Western Balkans Investment Framework (WBIF).

EBRD Head of Kosovo Sergiy Maslichenko said: “We are proud to continue our support for Kosovo’s green energy transition by financing energy efficiency improvements in residential buildings, which are the largest energy consumers in the country. Apart from the benefits for Kosovo’s green sustainable future, this project brings direct benefits to Kosovan families. By saving money on energy bills and enhancing home comfort, these investments will make homeowners’ lives easier.”

Mimoza Godanci, CEO of Banka për Biznes, said: “We are thrilled to embark on this journey towards a more sustainable future for Kosovo. This partnership with the EBRD, the EU and Japan represents a significant milestone for us. This collaboration underscores our commitment to fostering green initiatives that contribute to the long-term sustainability of our environment and the well-being of Kosovan families. We are honoured to be part of this transformative endeavour and look forward to the positive impact it will have on our country. This initiative aligns with BPB’s strategic vision for the future, reflecting our duty to both the environment and the businesses that partner with us.”

Banka për Biznes is a universal bank in Kosovo and a long-standing client of the EBRD, which holds a 10 per cent equity stake in the bank.

The EBRD’s GEFF programme has helped more than 18,000 homeowners in the Western Balkans region and 1,700 households in Kosovo to improve their energy efficiency.

The programme is supported by the EU and bilateral donors, who are providing funds through the WBIF as part of the Regional Energy Efficiency Programme (REEP).

The project aligns with the EBRD’s strategic priorities in Kosovo: promoting the green economy, supporting the competitive development of the private sector and fostering regional integration.

To date, the Bank has invested over €660 million in Kosovo through 108 projects.