Financing “climate” projects in the South and strengthening

Multicountry
© Armand Doug/Getty Images
Financing “climate” projects in the
South and strengthening European
cooperation around a “green fund”
Energy
Containing the temperature rise to 2°C by 2100 requires
developing renewable energies and energy efficiency in Southern
countries. PROPARCO, AFD and their European counterparts have
set up the Interact Climate Change Facility (ICCF) to facilitate
financing for “climate” projects.
BACKGROUND
THE PROJECT
The commitment made by emerging and
developing countries to combat climate
change is one of the main subjects for the
climate negotiations (Copenhagen, Lima,
Paris), in the same way as the channels
and amounts that the international community will mobilize to help them. In 2009,
industrialized countries took the initiative of
setting up a “green fund” to finance the fight
against climate change in Southern countries. The aim is to mobilize USD 100bn a
year by 2020.
Between 2012 and 2014, ICCF committed EUR 269m for 15 “climate” projects
submitted by its members and financed,
among others, by AFD Group (EUR 101m).
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AFD Group and its European counterparts
have been coordinating their “climate
finance” efforts for several years. In 2011,
the European Investment Bank (EIB),
PROPARCO and 10 other European Development Finance Institutions (EDFIs) set up
the Interact Climate Change Facility (ICCF):
a vehicle dedicated to cofinancing renewable energy and energy efficiency projects
led by the private sector in developing and
emerging countries.
Wind projects account for almost half the
projects financed by ICCF, followed by
energy efficiency, solar energy, geothermal
energy and hydropower. They are divided
in almost equal proportions between Asia
and Africa.
AFD and PROPARCO have been among
the main contributors to ICCF since it was
set up: the Group has provided EUR 160m
out of a total amount of EUR 461m.
In addition to the financial contribution to
the fight against climate change, ICCF
contributes to strengthening experience
sharing and capitalization among its
members, harmonizing their practices
and tools, and aligning their strategies
for operations. This initiative today stands
out as an example in terms of financial
and technical cooperation for the climate
among donors.
IMPACT
Installation of 1,147 MW of
renewable energy capacity.
2.46 million teqCO2 saved
every year.
Dissemination of the highest
environmental and social standards.
Key indicators
15 projects cofinanced, including 5
arranged by PROPARCO (Turkey,
Kenya, Côte d’Ivoire).
EUR 269M committed (ICCF
participation):
42% wind energy,
17% energy efficiency,
15% solar energy.
• Financial tool:
refinancing line
• Apports initiaux: AFD: EUR 100M
(2010) / PROPARCO: EUR 30M (2010),
EUR 20M (2013) and EUR 15M (2014)
• Beneficiary: ICCF
• Date de creation: 2011
• Project status: ongoing
Press contact
Magali Mévellec
+331 53 44 40 31
[email protected]
climat.afd.fr –­ January 2015