Decc allocates £50m for renewables growth in developing countries
The UK government has pledged £50m funding to help encourage investment in renewable energy projects in developing countries.
The cash – set aside from existing funding for the International Climate Fund – will go into the Climate Development Finance Facility (CDFF).
The CDFF aims to stimulate funding for medium to large scale (between 25-75MW) renewable energy projects in emerging economies where finance would otherwise be hard to come by.
It provides assistance from the development phase, through construction, to refinancing options after completion.
“By combining the several stages of investment finance into one facility, the CDFF provides a cradle-to-grave public-private financing solution,” a statement from Decc said.
Earlier this year, the previous Government gave the UK Green Investment Bank (GIB) £200m to expand its investment portfolio into India and Africa.
Then-Energy and Climate Change Secretary Ed Davey said the GIB would help maximise the impact of UK climate aid.
The new Conservative Government has also made clear it believes the fight against climate change must be a global effort.
Writing in a blog post on Wednesday, new Energy and Climate Change Secretary Amber Rudd said: “A global deal is the only way we can deliver the scale of action required – and it is strongly in the UK’s interest. A global deal provides the only credible means to leverage more from others and would further drive down the costs of climate action.
She added: “So agreeing a global deal is a massive opportunity for us to avoid the catastrophic effects of climate change and also to open up new opportunities for our low carbon industries. It’s not just governments who want this deal, its businesses, NGOs and campaign groups both in the UK and internationally.