Green means go

Investing in green projects can make companies more competitive and help their country meet climate goals. The problem is that it’s often hard for companies to find good green investments.

ProCredit Bank is trying to help companies solve this problem, but finding green investments isn’t easy for banks.

“We lack an understanding of how climate risks are impacting our clients and what we could do to support them,” says Dobrinka Stefanova Gjorgieva, head of the sustainability unit at ProCredit Bank, which offers lending and advice to small businesses and entrepreneurs in North Macedonia.

During the energy crisis, nearly all ProCredit Bank’s clients invested in solar panels, mainly to cut energy costs. However, companies don’t always appreciate the environmental benefits of these actions, Gjorgieva says, and they don’t always realise these are green projects.

To help financial institutions and companies understand green financing, the European Investment Bank provides special assistance under the Greening Financial Systems programme. This initiative helps central banks and other financial institutions develop regulatory frameworks and build expertise to improve green finance and understand new climate rules. Expertise offered through this initiative in 2025 helped ProCredit Bank better understand emissions regulations and green finance tools.

“Installing renewable energy systems and new equipment naturally improves energy efficiency,” she says. “But companies need to see how these investments reduce emissions and deliver broader environmental benefits.”

Green investments are closely tied to a company’s long-term survival. They help address climate risks, such as damage during heavy rains, or help companies adapt to new regulations, such as the new fee under the Carbon Border Adjustment Mechanism. This EU mechanism will apply taxes to certain carbon-intensive products that are sold to European Union countries. Companies in the Western Balkans that emit a lot of emissions and want to export to the EU will need to learn how to report their emissions starting in January 2026.

This new carbon fee poses a significant challenge for North Macedonia. According to the International Monetary Fund, 20% of the country’s gross domestic product is generated through exports to the European Union, and one-fifth of these exports will be subject to the new carbon levy.

“We currently lack knowledge on processes in areas such as climate risk assessment and carbon footprint measurement,” says ProCredit Bank’s Gjorgieva.

Knowledge gained through the Greening Financial Systems initiative will help ProCredit Bank advise clients on the best ways to manage rising climate risks, says Gjorgieva. “That’s why we’ve committed time and resources to this programme, to equip our employees with the necessary tools and procedures to support the local economy more effectively.’’

In turn, companies can make better investment decisions that align with new regulations.

Using this technical assistance, ProCredit Bank intends to measure the emissions of at least 20 clients. As the largest contributors to carbon emissions, these companies will participate in dedicated workshops led by EIB consultants. “The goal is to support them in identifying and adopting effective measures and strategies to mitigate and adapt to climate change,” Gjorgieva says.

An EIB survey of small companies in North Macedonia showed that nearly 40% have limited or no knowledge of the green economy. Despite this, 27% of respondents recognised competitive advantages as a key benefit of transitioning to greener practices, while another 27% saw increased revenue potential. The number of green loans in the country has risen almost three-fold since 2019, reaching €328 million in September 2024, according to the National Bank of North Macedonia.

“The EIB technical assistance helps us understand the entire business model – how a specific company can adapt, reduce emissions, and align with long-term climate goals,” says Gjorgieva at ProCredit Bank. “In this way, firms are able see the bigger picture and emerge as leaders in the fight against climate change.”

The EIB Greening Financial Systems programme is backed by the German government, which provided €30 million in funding through the IKI fund. The National Bank of North Macedonia, which is the country’s central bank, is benefiting a lot from this support. It is helping officials develop green taxonomy documents and integrate new standards into the reporting requirements for the financial sector.

“The Greening Financial Systems programme is a vital step towards advancing sustainable economic growth,” the National Bank’s governor, Trajko Slaveski, said when asked about the programme’s benefits.

Slaveski stated that the EIB programme had improved the bank’s ability to integrate climate and environmental risks into its future goals, enhancing the long-term stability of the country’s financial system.

“Macedonian companies urgently need support to help them transition to greener and more energy efficient practices,” says Bjorn Gabriel, the EIB representative to North Macedonia. “To address these challenges, we have deployed a range of advisory resources.”

The Greening Financial Systems initiative provides a foundation for broader support, but the European Investment Bank also offers specialised online tools such as the Decarbonisation Guide and the Green Eligibility Checker, as well as workshops held across the country to help Macedonian companies adopt sustainable practices.

This technical assistance, which is also offered in Albania, Armenia, Georgia, Kenya, Rwanda, Nigeria and Ethiopia, is expected to create 180 new investments and increase green investments in these countries by 10%.

“Regulators and supervisors play a crucial role in decarbonising economies by embedding climate risk considerations into regulatory frameworks,” says Richard Amor, the director for international partnerships at the EIB Global development arm of the European Investment Bank. “However, the expertise in this area is still scarce. The EIB’s technical assistance programme addresses this gap.”