As the economy still suffers from the pandemic and slowly prepares for post-Covid recovery, the investment mood of private businesses has changed, inclining more toward investments that address short-term urgent needs of the business, hence ensuring the survival of the businesses during the current stressful period. As a result, the confidence and interest of private entrepreneurs to make long-term sustainable investments that bring slower, long-term benefits for the company, have decreased. Investments in energy efficiency (EE), resource efficiency (REFF) and renewable energy (RE) which are considered to be longer-term investments, have lost out on the priority of the investment agenda of private businesses due to other priorities resulting from the Covid crises. The rationale of the Project is to incentivize the interest of the private sector to increase these types of investments since they bring long-term benefits to the companies as a microcosmos as well as to society and the planet on the macro level.

The overall objective of the project is to utilize Green Investments as key driver for MSME competitiveness and thereby contribute to a Green Recovery of the economy after the Covid pandemic. Guarantees and technical assistance can incentivize and enable such investments with a longer-term horizon in a context focused on short-term needs.

MACS has been assigned to support the KCGF to optimize the design and implementation of guarantees provided to PFIs to promote PFI’s capacity and willingness to provide financing for MSMEs in Kosovo for EE and RE investments. Additionally, MACS will support awareness raising measures among PFIs and the community of MSMEs for the benefit of relaizing Green Investments and capacity development to identify Green Investment Potential and financing potential in PFIs and MSMEs.