The Green Finance Facility (GFF) in North Macedonia is helping turn climate finance into practical improvements for households, businesses, and public health. Supported by the UN Joint SDG Fund, the programme enables families to replace old wood-burning stoves with cleaner heating systems such as heat pumps, while also helping small businesses invest in renewable energy and energy efficiency measures like rooftop solar. These upgrades are not only reducing energy costs for users but also improving air quality and helping the country move closer to its climate commitments.
The GFF is led under the coordination of the UN Resident Coordinator and implemented by UNDP in partnership with IOM and UNECE. It works closely with the government, the European Bank for Reconstruction and Development, and local financial institutions to expand access to affordable green finance for underserved households and small and medium enterprises. By lowering financial barriers, the programme makes it easier for people and businesses to invest in clean energy solutions that might otherwise be too costly or inaccessible.
A recent UNECE study provides concrete evidence of the programme’s early impact. Between 2023 and 2025, the GFF supported 84 small and medium enterprises and 212 households, generating verified annual energy savings of 65,345 megawatt-hours. This amount of energy is roughly enough to power around 17,000 homes for a year. Over the same period, the programme also reduced annual carbon dioxide emissions by more than 50,700 tonnes, an impact comparable to removing approximately 11,500 cars from the road.
One of the most significant findings is that the programme is also producing major health benefits, even though public health was not its original primary focus. North Macedonia, especially cities like Skopje and Tetovo, faces severe winter air pollution caused in part by solid-fuel heating systems. By encouraging the shift from traditional wood and other solid fuels to high-efficiency heat pumps and modern biomass systems, the GFF is reducing harmful fine particulate matter such as PM2.5 and PM10. These pollutants are closely linked to respiratory diseases, cardiovascular conditions, and premature death, meaning the programme is now delivering measurable health co-benefits alongside its climate and energy results.
The study also shows that consumer demand for cleaner technologies is strengthening. Heat pumps now make up nearly half of all household investments supported through the programme, indicating a clear move toward electrified and more efficient heating systems. With updated targets and a broader monitoring framework, the GFF is expected to deliver 9,500 megawatt-hours of household energy savings and cut nearly 7,500 kilograms of PM2.5 annually by 2027, further deepening its environmental and health impact.
Overall, the Green Finance Facility demonstrates how SDG-aligned finance can create multiple benefits at once. By directing affordable capital to households and businesses that need it most, the programme is generating gains not just for borrowers, but also for communities, health systems, and the climate. Its early success suggests that the model could serve as a strong example for other countries in the Western Balkans and beyond looking to combine clean energy investment with improved public health and sustainable development.
