THE LAB - The UK government has announced a £50 million commitment of existing funding to the Climate Development and Finance Facility that will help fast-track renewable energy projects in developing countries.
The Climate Development and Finance Facility has been developed within the framework of The Global Innovation Lab for Climate Finance (The Lab), an initiative that supports the identification and piloting of cutting edge climate finance instruments, and it is being taken forward by FMO, the Netherlands Development Finance Company, in partnership with Phoenix Infraworks from South Africa.
UK Prime Minister David Cameron said in a speech on Thursday night:
“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.”
According to The Lab’s analysis, the Climate Development and Finance Facility will mobilize at least USD 2 billion in new private finance out to 2020, while lowering the cost of clean electricity to consumers in developing countries.
In addition to the UK commitment, The Dutch government committed EUR 7 million to the Climate Development and Finance Facility in April, and FMO is also interested in investing up to USD 75 million from its own balance sheet.
The Global Innovation Lab for Climate Finance is a global initiative that supports the identification and piloting of cutting edge climate finance instruments. It aims to drive billions of dollars of private investment into climate change mitigation and adaptation in developing countries. Analytical and secretariat work of The Lab has been funded by the UK Department of Energy & Climate Change (DECC), the German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB), and the U.S. Department of State. Climate Policy Initiative serves as The Lab Secretariat.