Borrowers who take out green loans enjoy a number of significant benefits to support environmentally responsible initiatives. These include not only financial benefits, but also reputational benefits.
Environmental responsibility of businesses in Europe is encouraged. Banks offer more favorable rates than conventional loans, reducing the financial burden. The introduction of energy efficient technologies and equipment (solar panels, waste recycling systems, electric cars, construction of charging stations, energy efficient glazing, insulation of buildings) allows saving on electricity, heating and waste disposal in the long term.
Borrowers can expect more flexible collateral requirements for projects that comply with the taxonomy, the standards of which are also being implemented in Moldova. Proof of environmental effect (energy savings calculations) is required to receive incentives. In case of misuse of funds or failure to achieve the declared indicators, the bank may revise the loan terms.
Green lending mechanisms
The NBM develops green crediting instruments and discusses them with professional participants, explaining the difference with conventional credits, in accordance with the Roadmap for Sustainable Financing of the Republic of Moldova.
The event provided the representatives of the banking system with an overview of the market evolution at global and European level, the main regulatory framework, guidelines and regulations of the European Union (EU) and international organizations applicable to these instruments.
During the training, participants discussed the role of green and sustainability-related loans. The agenda included the main differences between the two instruments, their relevance for financial institutions, and the benefits for borrowers and lenders. Case studies were also presented and the potential of Moldova in developing the domestic market for such loans was analyzed.
The training session also discussed the impact of sustainable financing instruments on the green transition, improving the management of financial risks related to climate change and promoting responsible lending practices, the NBM press service reported.
The event was organized within the projects of the International Finance Corporation (IFC) and the European Union on sustainable finance implemented in Moldova, with the support of the Investment Climate Advisory Services Fund (FIAS-Moldova).
Benefits for lenders
Central banks usually introduce incentives for such loans. For example, the Bank of Russia allows the application of reduced risk ratios (risk-weights) when calculating ratios for priority green and adaptation projects. This reduces the burden on a bank’s capital (in some cases by 2-3 times), allowing it to issue more loans with the same amount of own funds.
It also provides access to cheap funding. Banks can raise capital by issuing their own “green” bonds. Investor demand for such instruments is often higher and the cost of raising funds is lower than for conventional bonds.
An active portfolio of green loans makes the bank itself more attractive to international investors and shareholders, making it easier to attract investments and partnerships with large corporations. As part of programs to support sustainable development, the government can compensate banks for some of the lost profits due to preferential interest rates for borrowers.
Another advantage is assistance in developing new markets: green finance allows attracting innovative companies and highly rated borrowers who may not have previously used the bank’s services, expanding the client base in a promising segment.
Projects focused on energy efficiency and sustainability often have a lower probability of default in the long term. Sustainable companies are better protected against market shocks and changes in environmental legislation.
Green Line in Moldova
Green credit line exists, for example, in CB maib – these are specialized financing programs (mainly under the international GEFF program from the EBRD) aimed at supporting environmental and energy efficiency projects for businesses and individuals.
Financing amounts are up to EUR 300,000 for technologies from the Green Technology Selector list, up to EUR 500,000 for complex projects in the residential sector, and up to EUR 5,000,000 for large-scale investments in the commercial and industrial sector. The loan term is up to 48-60 months (depending on the project, the term can be up to 84 months) plus a grace period of up to 12 months on the principal.
For certain projects in the residential sector, financial incentives (cashback/grants) of up to 35% of the investment amount are available. The bank also offers technical support and collateral-free limits of up to 2 million lei.
The exact official statistics on the number of loans issued specifically in the “green mortgage” segment for the entire banking system of Moldova is not publicly detailed by the National Bank. However, data on the volumes of the “green” portfolio of the largest market player – maib, and general trends in mortgage lending are available.
Thus, the “green portfolio” of CB Maib, which is actively increasing the share of environmental loans, exceeded 1.3 billion lei by mid-2025.
