The UK government has committed £50 million of existing funding to the Climate Development Finance Facility (CDFF) to help developing countries tackle climate change.
The funding is aimed at reducing poverty by helping developing countries take up low carbon growth and adapt to the impacts of climate change.
CDFF is an innovative cradle-to-grave finance facility for renewable energy projects ranging from 25 MW to 75 MW in developing countries.
It provides development funding to new renewable energy projects, funding to support them during construction phase and a re-financing facility to attract institutional investors such as pension funds.
The project was developed by the Global Innovation Lab for Climate Finance – a global platform that brings together governments and major investors to identify and tackle the barriers to low carbon investment.
The UK has provided £3.87 billion through the International Climate Fund from 2011 to 2016.
In addition to the UK commitment, the Dutch government committed €7 million to the CDFF in April, and the Netherlands Development Finance Company (FMO) is also interested in investing up to $75 million from its own balance sheet, according to the Global Innovation Lab for Climate Finance.
The Global Innovation Lab is an initiative that brings together a small number of senior private and public sector actors to identify, design, and support the piloting of new climate finance instruments with the aim of unlocking billions of dollars of private investment for climate change mitigation and adaption in developing countries.
The Lab was developed by UK, USA and Germany. Other donors who have joined the Lab are France, the Netherlands, Denmark, Norway and Japan.
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Image: UK Government