Skopje, 2 June 2025 (EBRD/MIA) - The European Bank for Reconstruction and Development (EBRD) is expanding its support for green finance in North Macedonia by launching the Green and Growth Programme in partnership with Sparkasse Bank and NLB Bank.

This initiative is the second pilot intermediated finance product conducted in the country in two years, following the success of the Green Financing Facility (GFF) developed with the support of the United Nations Development Programme and the Government of North Macedonia.

The two partner banks are joining the innovative Green and Growth programme as part of the Accelerating Coal Transition (ACT) Investment Program, backed by the CIF. Both banks bring a proven track record in promoting sustainable finance and environmental responsibility in the financial sector.

Through the Green and Growth programme, the banks will provide targeted loans to local companies of all sizes in the Pelagonija and Southwestern regions of the country, which will be most affected by the decommissioning of the country’s coal plants. Eligible investments will include green technologies, greater energy efficiency, the expansion of current business premises and investments in new business facilities in the targeted regions. 

The signing of the loan agreements was the opening highlight of a two-day event taking place in Skopje on 2 and 3 June, organised by the CIF and the EBRD. The event brings together key actors from the Government of North Macedonia, international financial institutions, donors and civil society to support the country's ambitious plans for a just and inclusive energy transition.

North Macedonia has set bold climate targets in its enhanced Nationally Determined Contribution, aiming to reduce greenhouse gas emissions by 52 per cent, or achieve a net 82 per cent reduction, by 2030 from 1990 levels. In line with these commitments and international climate frameworks, the country is working towards a full coal phase-out before 2030, while ensuring energy security and social equity throughout the transition.

As one of six pilot countries selected as part of the CIF’s ACT programme and the first in the Western Balkans region, North Macedonia has been given an investment allocation of USD 85 million. The programme focuses on an integrated approach to coal transition, covering governance reforms, community-level just-transition measures and the transformation of infrastructure. The EBRD-led Green and Growth programme is one of the flagship projects of this investment initiative.

Aleksandra Vukosavljevic, EBRD Director, Financial Institutions, Western Balkans and Eastern Europe, said: "The signing of these agreements marks a significant milestone in North Macedonia's journey towards a sustainable and energy-efficient future. By joining the EBRD's Green and Growth Programme, Sparkasse and NLB Banks are not only expanding access to green finance, but also demonstrating their commitment to supporting the country's ambitious climate goals. This partnership will play a crucial role in helping local companies adopt innovative technologies and contribute to a just and inclusive energy transition."

Nina Nedanoska, Deputy President of the Management Board at Sparkasse Bank, said: “This partnership with the EBRD is a strategic business endeavour and an expression of our vision and responsibility towards the future of our country and region. Through this credit line, Sparkasse Bank will invest in the green transition, business growth and the improvement of citizens’ living standards. As a market leader in green financing, we have been making efforts for years to support the transition to a green and sustainable economy, as well as the development of regional communities. I am confident that this initiative, like all previous ones, will contribute to positive and long-term changes, and that together we will build the economy of the future – one that is innovative and sustainable.”

Toni Stojanovski, President of the Board of Directors of NLB Bank, said: “We are happy to share the same values ​​and vision for a sustainable future as the EBRD. Our strategic partnership in the Green and Growth programme will provide essential financing to support the green transition of the corporate sector in Pelagonija and the South-western region. This initiative is not just a financial undertaking, but a clear expression of a long-term vision. At NLB, we believe that sustainable financing is the cornerstone of a resilient economy and a healthy society, and that the choices we make today will shape the world our children will inherit tomorrow.”

The EBRD is a major institutional investor in North Macedonia. To date, it has invested €2.9 billion in 198 projects across the country.

Photo: EBRD