European development institutions set up climate change fund

New Interact Climate Change Fund will be catalyst for long-term investment

A group of 14 European development finance institutions have agreed to set up a joint climate change fund – aiming to act as a catalyst to attract additional long-term investments.
The Agence Française de Développement, the European Investment Bank and development finance institutions from 12 European countries are set to sign a Memorandum of Understanding to create the Interact Climate Change Fund (ICCF).
They aim 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. The planned size of the new fund was not disclosed.
They will “seek to demonstrate the financial attractiveness of climate-friendly projects to privatesector investors in developing countries and emerging markets and will commit to act as catalyst lead investors to attract additional long-term investments”.
And the institutions will 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 from Belgium’s BIO, the UK’s CDC, Spain’s COFIDES, DEG of Germany, Finland’s FINNFUND, the Netherlands’ FMO, Denmark’s IFU, Norway’s NORFUND, Austria’s OeEB as well as France’s PROPARCO and Sifem of Switzerland and Sweden’s SWEDFUND.
Link to announcement