Today, at the COP21 in Paris, the Climate Investor One facility was officially launched by the Dutch Minister for Foreign Trade and Development Cooperation, Mrs. Lilianne Ploumen. Representatives of the United Kingdom’s Department of Energy & Climate Change (DECC) and Denmark's Export Credit Agency (EKF) attended the ceremony.
Climate Investor One is a new facility, established by the Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (“FMO”) in partnership with Phoenix InfraWorks, to encourage private sector investment into renewable energy projects in developing countries. The facility will be managed by Climate Fund Managers UA, a venture between FMO and Phoenix InfraWorks.
Climate Investor One is a new approach to the funding of infrastructure, through which environmental impact, economic returns and operating infrastructure will be delivered in a faster and simpler manner. The facility is unique in the way it combines three investment funds into one facility to finance renewable energy projects at specific stages of the project lifecycle: the development stage, the construction stage, and the operational stage. Climate Investor One will have significant positive social impact as the majority of the funding is foreseen to be invested in the poorest countries, 6 million underserved people are expected to be reached and 23.000 direct and 300.000 indirect jobs are being supported. Moreover, Climate Investor One aims to realize an estimated annual avoidance of 1.5 million ton in CO2 emissions, the equivalent of 500,000 cars off the roads each year.
Climate Investor One was selected as one of four winning pilot initiatives selected and endorsed by The Global Innovation Lab for Climate Finance (“the Lab”) in April 2015. The Lab is a global initiative that supports the identification and piloting of cutting edge climate finance instruments and aims to drive billions of dollars of private investments into climate change mitigation and adaptation in developing countries.
Minister Ploumen announced a €50 million contribution to augment a £50 million expression of interest from the UK government and US$75 million from FMO. This enables Climate Investor One to move to the next phase and attract participation of private investors in renewable energy projects in developing countries.
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QUOTATIONS on Climate Investor One
David Cameron, Prime Minister of the UK, recently announced that: “This is a vital year to secure an ambitious deal that can combat climate change. The UK is already playing its part, but we need to do more to get the private sector involved, fostering research and innovation into new clean energies, and supporting growth and jobs. That’s why we’ll put £50 million of our existing climate funding towards a new international initiative that will back new technologies for a clean energy economy. Quite simply, it’s time the market got to work on climate change.”
Lilianne Ploumen, Dutch Minister for Foreign Trade and Development Cooperation:
“It is the aim of the Dutch government to provide access to renewable energy for 50 million people in poor countries in 2030. This will not only benefit their well-being, but also the environment. Companies may be hesitant to invest in renewable energy projects in developing countries because of the high perceived risks. That’s why the Dutch government wants to co-invest and act as an underwriter for these types of much needed investments.”
Nanno Kleiterp, Chief Executive Officer of FMO, the Netherlands Development Finance Company, and Lab Principal: “The Netherlands is strongly committed to addressing climate change, and FMO has valued our role in The Lab in this context. We’ve been able to develop Climate Investor One in partnership with other leading experts and agencies so that it is now a concrete solution to accelerating renewable energy. Given this success, we greatly look forward to seeing the next generation of innovative solutions developed.”
Andrew Johnstone, Chief Executive Officer of Phoenix InfraWorks and Climate Fund Managers:
“Basic infrastructure is a necessary foundation stone of any healthy, vibrant society, and climate change is an unavoidable truth. Climate Investor One brings together the need to address climate change on a global basis with the provision of power in geographies where development is most needed. With the collaboration of Governments and the private sector Climate Investor One points the way to mobilising sustainable capital in a manner which affects people lives positively.
FMO is the Dutch development bank. FMO has invested in the private sector in developing countries and emerging markets for more than 45 years. Its mission is to empower entrepreneurs to build a better world.
It invests in sectors where it believes its contribution can have the highest long-term impact: financial institutions, energy and agribusiness. Alongside partners, it invests in the infrastructure, manufacturing and services sectors. With an investment portfolio of EUR 8 billion spanning over 85 countries, FMO is one of the larger bilateral private sector development banks globally. www.fmo.nl
About Phoenix InfraWorks
Phoenix InfraWorks is a specialist infrastructure business focused on delivering new infrastructure though the use of innovative structures and sources of capital. Phoenix InfraWorks identifies and incubates infrastructure platforms and, by linking together experience, expertise and high quality partners, aims to deliver infrastructure solutions in emerging markets in efficient ways. The DNA of Phoenix reflects extensive experience in developing, financing and managing infrastructure projects and mobilising the capital to make it happen.