The International Finance Corporation (IFC) and the government of Finland have joined forces in a new partnership to spur private sector financing for climate change solutions in low-income countries and in fragile and conflict situations.
The new partnership will identify and develop innovative projects to be supported by the Finland-IFC Blended Finance for Climate Programme and will help IFC undertake early-stage project development activities in new areas, such as battery storage.
“Finland is committed to finding concrete and scalable solutions to the most pressing global challenges, of which climate change is the most urgent one,” said Anne-Mari Virolainen, Finland’s minister for foreign trade and development.
“These early-stage project development efforts, including piloting new technologies such as battery storage and wave energy or studying the feasibility of new business models such as innovative financing for forestry or biodiversity, will help IFC identify technological solutions and opportunities that would otherwise be a missed opportunity,” added Virolainen.
The Finland-IFC Blended Finance for Climate Programme, launched in October 2017, implements climate-mitigation investments in renewable energy, energy efficiency, green buildings, climate-smart agriculture, and forestry.
Adapting to climate change
The programme will also seek investments that support developing countries in their efforts to adapt to the effects of climate change, such as creating risk-sharing facilities to provide financial protection following natural disasters from climate change-related events.
The aim of the programme is to help IFC move ahead with innovative and high- impact climate projects. Read more: $1bn invested in scaling up battery storage developments
“At IFC we have ambitious goals for our climate business—to boost investments even further and to open new markets at the technological frontier,” said Hans Peter Lankes, IFC’s Vice President for Economics and Private Sector Development.
“Effective and efficient use of blended concessional finance is a key tool to help achieve these ambitions, and we welcome our continued partnership with the government of Finland to catalyse private sector investments and secure impact through climate change solutions.”
The programme builds on IFC’s experience in blended finance, which uses development-partner funds alongside its own—and its clients’ commercial financing—to catalyse private sector investments.