European Development Finance Institutions step up climate fund effort

Agence Française de Développement (AFD), the European Investment Bank (EIB) and 12 European Development Finance Institutions (EDFI) signed a Memorandum of Understanding for the new Interact Climate Change Fund (ICCF) at a meeting in Bruges 7th May. The Parties intend to establish an investment matching facility to invest in private sector climate change projects in Africa, the Caribbean and the Pacific, Asia and Latin America before the end of 2010.

Partners will seek to demonstrate the financial attractiveness of climate-friendly projects to private sector investors in developing countries and emerging markets and will commit to act as catalyst lead investors to attract additional long-term investments. The institutions will further promote use of clean technology as an integral part of economic development and provide long term financing for renewable energy projects in countries facing acute energy shortages and restricted energy access, further contributing to economic development.

Funding is expected to be provided by Agence Française de Développement, the European Investment Bank through the Cotonou Investment Facility and 12 EDFI members: BIO (Belgium), CDC (United Kingdom), COFIDES (Spain), DEG (Germany), FINNFUND (Finland), FMO (the Netherlands), IFU (Denmark), NORFUND (Norway), OeEB (Austria), PROPARCO (France), Sifem (Switzerland) and SWEDFUND (Sweden).