4th October 2021, Skopje – Future growth of the economy and recovery after the COVID-19 induced crisis will be based on digital economy, green economy and inclusive prosperity. Support to green and digital transformation is one of the commitments of the Government and the Ministry of Finance, incorporated in the Recovery and Growth Acceleration Financing Plan, entering its final stage of preparation.
Minister of Finance, Fatmir Besimi, said the today’s Conference “Accelerating Green Financing in North Macedonia: Introducing the Green Financing Facility”, held in Skopje.
Recovery and Growth Acceleration Financing Plan is one of the strategic documents of the Ministry of Finance. It is geared towards accomplishing the commitment to double the rates of economic growth, as well as fiscal consolidation. Green and digital transformation, which future development is based on, requires huge investments, and the very essence of the Plan is to produce a multiplying effect by creating and using new mechanisms, instruments, Funds and sources of financing, i.e. in addition to the planned public investments amounting to more than EUR 4 billion for the period 2021-2026 financed from the Budget, IPA funds and by international financial institutions, much more funds and investments from the private sector to be mobilized, the Minister pointed out.
In addition to increased investments, The Plan is expected to contribute to increased rates of medium-term economic growth to 5% annual growth and ensuring fiscal consolidation by reducing the public debt below 60% of GDP in the medium term.
As he explained, the Plan presents the existing and the new mechanisms for access to capital to finance the recovery and the acceleration of the economic growth, through investment projects in both the public and the private sector, also quantifying the effects on gross investments and the economic growth.
At the Conference, talking at the panel discussion “Green Financing in North Macedonia”, Minister Besimi addressed the section of the Plan aimed towards green economy, i.e. the new instruments and Funds envisaged therein.
Green bonds are a new financial instrument encouraging projects that support the Green Agenda and the green transition, aiming at environment projects, in particular improving energy efficiency; preventing or limiting pollution; integrated waste management system; supporting sustainable agriculture, fishing and forestry; protecting aquatic and terrestrial ecosystems; providing clean transport and sustainable management of waters; cultivating environment-friendly technologies, etc.
The Plan also envisages establishment of Energy Efficiency Fund within the Development Bank of Northern Macedonia, with funds intended, among other things, for future energy efficient investments, as well as financing of the investments in energy efficiency and renewable energy in public buildings. Moreover, financing is also envisaged through a Hybrid Green and Digital Economy MSME Fund, as well as Hybrid Strategic Green Investment Fund for the purpose of investing in projects of large enterprises.
As the Minister said, this is just a section of the Plan envisaging new forms and ways of investing, projecting for EUR 12 billion to be invested in projects designed and implemented by both the public and the private sector.
Government of North Macedonia is focused on the Green Agenda, digitalization, innovations and technology, development of human capital, improvement of infrastructure, social cohesion and good governance. Government’s commitment to environment protection also reflects through the support envisaged in the Budget and a special green development program, as well as the efforts made to use the financial possibilities available from the international financial institutions, Minister Besimi said.