Increase Your Knowledge About The Global Energy Efficiency and Renewable Energy Fund
GEEREF, which is a public-private partnership or PPP was proposed in the year 2006. The fund was specially designed to maximize the leveraged by the help of public funds financed by the European Commission. The fund was also used to develop small-scaled or medium-sized projects appearing in slowly emerging markets. Moreover, GEEREF is also known as The Global Energy Efficiency and Renewable Energy Fund.
GEEREF was primarily initiated in the year 2006; however, it was launched in 2008 with joint funding from the European Union (EU), Norway, And Germany, which totally accounted for € 112 million. It also managed to raise its total fundings to € 222 million after it terminated its fundraising motive from the private sector in May 2015.
How does GEEREF manage to raise its funds?
Some of the largest contributions made in the fund by the private sectors originally came from asset managers, individuals with high net worth, and pension funds accumulated from around the globe. The contributions made at such a large-scale also reflected the potential of the private sector as well as its interest in funding.
Institutional investors that are companies or individuals who invest on behalf of other investors are usually reluctant to take a step in new and unfamiliar sectors. It happens even though these sectors are proved to be attractive and beneficial. Moreover, the topic of renewable energy was still at its beginning stage in most of the countries. However, the public investors of the fund accepted to provide beneficial returns to the public sector that ultimately mitigated the latter’s possible risk chances.
Positive impacts created by this fund
Upon a recent study, The Global Energy Efficiency and Renewable Energy Fund has managed to invest in 92 different projects so far. The majority of these projects are either under construction, project commissioning, or development. Most importantly, every project initiated by GEEREF heavily relies on its motive: “People, Profit, Planet”.
In addition to this, every project has a primary aim of tackling climate change, easy access to electricity, and most importantly, profitable return to its investors. The fund managers of each project are obliged to draft development plans contributing to the social as well as economic growth of their surroundings.
The Africa Renewable Energy Fund, which is also known as AERF was integrated into GEEREF and has contributed to thirteen different projects. The fund is popularly renowned for investing in small-scale projects including solar, geothermal, and biomass projects.
The establishment of GEEREF was a smart and convenient move for funding numerous small-scale and medium-scale projects. With the help of this fund, developing countries can place greater emphasis on sustaining renewable energy for a much longer period. The projects are also heavily relied on developing social and economic conditions.