Sustainable Development Projects in Focus of Banks, and the Most Energy Responsible Await Lower Interest Rates

Smaller Croatian hydropower plants, solar power plants, biomass and biogas plants are some of the projects financed by bank loans. Most of the contracted so-called green loans, as explained by Privredna banka Zagreb, actually relate to the renovation of multi-apartment buildings and greater energy efficiency of small and medium-sized enterprises. Sustainable development projects are something that domestic banks have focused more on financing in recent years. For example, PBZ has developed several products specific to energy efficiency projects and renewable energy sources in collaboration with international development banks over the past four years.

– The credit lines are supported by free technical assistance and non-repayable funds, incentives, as a percentage of the loan amount, from five to 15 percent, which are paid to clients after successfully completed projects. Approximately 140 projects have been financed through credit lines with international development banks so far – say PBZ.

Investment for Savings

Addiko Bank offers investment loans for projects related to environmental protection and energy efficiency. In collaboration with HBOR, it offers financing according to its credit programs – environmental protection projects and the energy renovation credit program for buildings. In this bank, loans can be obtained for waste management projects, waste processing, and similar investments in renewable energy sources and their utilization, projects related to increasing energy efficiency levels, etc. To obtain a loan, you must submit an application, status documentation, financial reports, documentation on offered security instruments, an investment project or business plan, technical documentation with the relevant permits, cost estimates, offers, pre-calculations, environmental impact studies…

Short and Long Term

That financing energy efficiency projects and projects that ensure sustainable development and strengthening the financing of small and medium-sized enterprises is a strategic goal, they emphasize from Hrvatska poštanska banka. The offer for business entities includes loans in kuna for short-term and long-term financing, from which they highlight Green loans for entrepreneurs to finance solar systems for the production of electricity and thermal energy for their own needs, the purchase or construction of low-energy real estate, and improving the energy efficiency of business real estate and/or the entire production process. This bank points out that clients who increase energy efficiency by at least one class are allowed to reduce interest rates by HPB. – Due to natural potential resources, large underutilization of space for installing solar cells, small hydropower plants, and other types of plants, less complexity of plants compared to conventional power plants, but also quite expensive equipment, we believe that the segment of small and medium-sized enterprises should be supported for investment in renewable energy sources, thus strengthening private initiatives in this sector – they note at Erste Bank.