Finland-IFC Blended Finance for Climate Program
Development cooperation , 08.01.2018

Finland-IFC Blended Finance for Climate Program

Description

Finland channels 114 million euros for climate investments via a trust fund administered by IFC (International Finance Corporation). The life of the fund is 25 years. Finland’s capital will be invested solely into climate related projects in developing countries. The financing required for a transition to a low-carbon, resilient global economy is counted in the trillions not billions. People living in poverty are the most vulnerable to the effects of climate change. IFC is targeting its efforts to bring climate solutions where they are needed most. The main objectives of the Program are to address market barriers that prevent the faster, more widespread or longer-term sustainable adoption of low-carbon technologies and business models in developing countries, leverage and bring private capital that will help developing and emerging countries grow on a low carbon path, and catalyze investments with strong development and climate benefits that would not happen otherwise. A key element of the Program will be enhancing and increasing the cooperation and relationship between the IFC and Finnish stakeholders in the critical climate change fora. By making this investment Finland delivers on its intention to use a bulk of its development policy investments for climate financing announced at the Paris Climate Summit in 2015. IFC is a member of the World Bank Group and the largest global development institution focused exclusively on the private sector in over 100 developing countries. In addition granting loans, mezzanine financing and guarantees, IFC also makes capital investments in promising private firms in developing countries. IFC has 186 member countries including Finland.

Target region

Developing countries

Objectives monitored by OECD's Development Assistance Committee

  • Aid to environment
  • Aid to environment
  • Climate change - mitigation
  • Climate change - adaptation

Field of activity

  • Energy generation, renewable sources – multiple technologies 50%
  • Forestry development 20%
  • Multisector aid 30%

Type of aid

Contributions to specific-purpose programmes and funds managed by international organisations (multilateral, INGO)

Funding channel

Kv rahoitusyhtiö

Contact

keo-50

Code for the object of funding

89892834

ID

UHA2017-004815

Modified

08.01.2018