Business Forum • 25 November, 2024 at 12:31 PM
A new IFC investment in senior bonds issued by UniCredit Bank S.A., the Romanian subsidiary of UniCredit S.p.A., representing the first tranche of the total €108 million investment approved in relation to UniCredit Bank`s Euro Medium Term Notes Programme, will expand access to green loans for small and medium enterprises (SMEs) and individuals, including women, to bolster the country's climate finance market and support its green transition.
Romania's energy intensity remains over 60 percent higher than the EU average, even after a 30 percent reduction over the past decade. Although this presents a challenge, the country has committed to increasing its renewable energy consumption to 30.7 percent by 2030. Significant challenges remain in reducing greenhouse gas (GHG) emissions, particularly in the energy and housing sectors, which together account for a substantial portion of emissions.
IFC's investment is fully dedicated to climate finance, with half allocated to green loans for SMEs and the other half to green housing loans, including mortgages and renovation loans. At least half of the green housing loans are specifically earmarked for women. This funding is part of a broader program to strengthen Romania's emerging climate finance market, fostering competition and encouraging replication by other banks.
According to the 2023 World Bank Group Romania Country Climate and Development Report (CCDR), the country needs total investments of $356 billion to achieve net-zero emissions by 2050, with two-thirds expected to be financed by the private sector. In alignment with these projections, IFC has been actively supporting Romania's decarbonization targets and transition to a low-carbon economy.
Romania represents IFC's largest country exposure in Europe, with a portfolio of $2.1 billion, and its ninth largest globally.
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet.