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Implementing green lending at ProCredit Banks in Eastern Europe & Central Asia

Project Details

CLIENT

ProCredit Banks

YEAR

2008-2017

COUNTRY / REGION

Armenia, Albania, Bosnia and Herzegovina, Bulgaria, Georgia, Greece, Kosovo, Macedonia, Moldova, Romania, Serbia, Ukraine / Eastern Europe & Central Asia

EXPERTISE

Green Finance

Training & Skill Development

KEY TOPICS

Mitigation & Adaptation Finance

Green Economy Financing

Train-the-Trainer

CONTACT

Carina Dunker

The ProCredit group is made up of financial institutions providing banking services in Eastern Europe, Latin America and Germany on a socially and environmentally sustainable basis. In the framework of implementing a green finance and environmental management strategy for the group, IPC supported numerous assignments to introduce green finance products targeting agricultural, MSME and retail clients. IPC has developed a standardised methodology that focuses on turnkey solutions and empowers institutions to lead the transition to green economy

Technical, market and institutional study

  • conducting portfolio analysis and screening to identify potential target sectors
  • performing on-location research: policy and regulatory framework, market study on potential demand in target sectors and availability of technologies for green investments
  • technical and financial analysis of the technological level and environmental practices of potential clients, and the potential solutions (energy efficiency, renewable energy, water efficiency, etc.)
  • conducting energy audits for selected clients, including proposed measures
  • formulating eligibility criteria for standardised green investments with high market potential and profitability
  • applying a methodology to calculate energy savings, CO2 emissions reductions and environmental impacts of green loans
  • performing institutional gap analysis for implementation of a green finance strategy and financing of green investments: organisational structure, policies and procedures, business strategy, staff and training needs

Product development and strengthening of financial institutions

  • developing efficient green loan design and adjusting credit policies, procedures and processes for EE/RE/green credit products, including terms and conditions
  • supporting business plan development and target setting for green loans
  • coaching and training technical and other key staff (product managers) on the identification and analysis of green investments and acquisition strategies for green clients
  • developing and implementing training programmes, including seminars and workshops, for all lending staff and in-house multipliers

Product launch, positioning and business development

  • defining a marketing and PR concept and strategy for green loans (also designing materials and preparing launch event, as necessary)
  • creating a pipeline of green investments for the bank, including support in acquisition of green clients and projects
  • support in networking and development of alliances with technology suppliers, local experts, NGOs and public authorities to promote green finance with potential clients (also participation in events and fairs)

Our approach features strong involvement of bank management and key staff in all stages of the project: discussion of initial findings, implementation of changes, product launch and follow-up, and assessment of green finance performance (portfolio, process efficiency, branding, etc.).

Impact

The ProCredit Banks has developed into pioneering institutions and market leaders, and green lending is one of the group’s fastest growing business areas. The financed measures have led to substantial improvements in energy efficiency, reductions in CO2 emissions, enhanced protection of water and soil resources and greater business sustainability. Examples are: solar, wind, hydro and biomass energy, automated industrial equipment, efficient agricultural equipment, eco-efficient constructions, organic farming, EE/RE suppliers.

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