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Supporting the Investment and Development Fund of Montenegro to Finance Climate Projects

Project

Un projet pour une économie durable et inclusive au Monténégro
© Julien Maury
Project start date
Status

Ongoing

Project duration
12 years
AFD financing amount
50 400 000 €
Country and region
Western Balkans
Location
Podgorica
Type of financing
Loan, Grant
Beneficiaries
Investment and Development Fund of Montenegro (IDF)
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This project aims to support and promote climate investments in favor of Montenegrin SMEs and municipalities, and to strengthen the Investment and Development Fund of Montenegro (IDF) in the structuring of a dedicated financing offer, in line with the National Strategy for Sustainable Development.

Context

Montenegro's ambitions in terms of climate change and environmental protection are high. Significant efforts are needed to operationalize the national climate change and sustainable development strategies.  

Among the existing tools to implement these objectives is the Investment and Development Fund of Montenegro (IDF).  Its priority areas of intervention are support for entrepreneurship, the reduction of regional imbalances, the financing of infrastructure projects and support for vulnerable populations. Since 2019, the themes of energy efficiency, renewable energies and support for sustainable agriculture and tourism are also part of IDF's priorities. It is in this context that IDF approached AFD in February 2020 in order to support the implementation of its strategic objectives.

Description

The aim of the project is to contribute, through financial and non-financial support, to the accompaniment and promotion of climate investments in favor of Montenegrin SMEs and municipalities. The project also aims to support IDF in the structuring of a financing package dedicated to climate projects and investments that are consistent with the SDGs, in line with the National Sustainable Development Strategy. More specifically, the project aims to:

  • Support IDF in the implementation of a Climate finance strategy and the development of its offer of associated financial products, refining its analysis of green investment projects through the provision of long-term resources to the bank and a technical assistance program;
  • Expand the green investment market in Montenegro and reduce the environmental and climate footprint of project stakeholders ;
  • Increase the volume of funding to support vulnerable populations and the development of the country’s disadvantaged areas.

Impacts

This programme, with a dual "Climate" and "Social" component, aims to support IDF in marketing and promoting a range of green and sustainable finance products with the objective of contributing to the inclusive and sustainable economic development of Montenegro as part of its integration path with the EU.