German Coal Aid Revolving Fund - Revision

Funded by the German government, the German Coal Aid Revolving Fund (GCARF) started in 1991 with an original target to provide financing for the private sector to support energy efficiency investments and reduce pollution. The Fund is administered by the Hungarian Credit Bank. Its scope has been expanded to include municipalities. The main objectives are to replace traditional energy sources with renewable or waste-related energy sources, to induce energy saving in businesses and to reduce energy waste at the lowest possible cost. The preferential interest is one-third of the central bank's base rate with an additional 2.5% interest. From 1991 to 2002 the total amount of investments approved for 'live projects' was HUF 14.4 billion, of which HUF 11.9 billion was made up of preferential credits. In 2000, the GCARF allocated more than HUF 1 billion in preferential credit for SMEs, which resulted in energy savings of 325 TJ per year and total investment of HUF 1.6 billion. In 2001, a total of HUF 0.89 billion was spent on renewable investments from preferential credit. In 2002, the amount of the preferential credit was increased to HUF 1.51 billion. A total investment of HUF 3.53 billion resulted in 1.04 PJ energy savings. Main fields of activity: energy conversion equipment, distribution networks and heating systems; district heating systems control and automation of technological processes and equipment lighting modernisation CHP generation metering, data processing and control heat insulation

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