Kosovo has been looking for ways to accelerate its green revolution. Creating new renewable energy sources and making business operations more energy efficient would help the country do just this, but associated costs have often been a roadblock. To overcome these challenges, USAID has been working with partners to unlock financing opportunities for those seeking to invest in a more sustainable future.
Earlier this year, USAID supported the Bank for Business (BPB) to design policies and procedures to launch the country’s first-ever green loans for businesses. In the months ahead, these loans will make significant financial resources available to individuals looking to produce wind and solar energy for Kosovo’s power grid. They will also help companies buy energy-efficient machinery and other equipment needed for climate-smart agricultural methods.
With slight modifications to this loan product, BPB has also begun lending to individual households who want to install solar panels and upgrade insulation to lower costs for heating and cooling, among other projects. BPB has already secured $4 million from the European Bank for Reconstruction and Development (EBRD) to begin administering these types of loans and is working to secure additional resources.
This innovation provides a model other financial institutions and governments across the Western Balkans could replicate to boost climate action. It also shows that Kosovo is capable of driving sustainable economic growth that actively helps the country adapt to the impacts of climate change.
