eventsFinland To Make Major Climate Investment in Developing Countries

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13 Oct

Finland To Make Major Climate Investment in Developing Countries

Helsinki, 13/10/2017 (MAP) – Finland and the IFC (International Finance Corporation), which is a member of the World Bank Group, will together set up a joint climate fund that will support renewable and clean energy solutions and other climate projects in developing countries, said a statement on Friday by the Finish government.

Finland will channel a total of EUR 114 million into the Finland-IFC Climate Change Program, whose duration is 25 years. The funds will be invested in climate projects during the next five years. This will be the largest funding ever targeted at international climate work in Finland, it said.

“With this investment, Finland will fulfil the promise it gave at the United Nation’s Climate Change Conference in Paris for directing a significant part of its development funding to climate actions. At the same time, establishing a joint fund with the world’s largest development financier will open for Finnish companies a door to the growing clean energy solution markets in developing countries”, said Minister for Foreign Trade and Development Kai Mykkänen.

Compared with the IFC’s usual practice, the Finland Fund allows directing investments to poorer countries than before and focusing on earlier phase investments. Funds will only be invested in developing countries. Financial investments differ from grant based aid in that the capital invested will be returned and can be reused. In return for Finland’s financing, the IFC will also invest its own capital in all of the projects. The aim is also to attract a large amount of other private and public capital, the same source added.

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