IFC and Finland encourage companies to join climate projects in the poorest countries
In October 2017 Finland decided on a significant investment in a fund that supports climate projects in developing countries. The discussion on the new climate fund attracted a full house in Helsinki last Thursday.
On Thursday 14 December Nena Stoiljkovic, Vice President for the International Finance Corporation IFC, and Minister for Foreign Trade and Development Kai Mykkänen presented the new climate fund to which Finland will channel a total of EUR 114 million.
By this investment Finland will fulfil the promise given at the UN Climate Change Conference in Paris to direct a significant part of financial investments under the development policy to climate actions. This will also help create markets for climate change solutions in countries where more investments are needed.
“There is a big appetite for climate funding, but private investors will not respond to the need quickly enough”, says Minister for Foreign Trade and Development Kai Mykkänen.
The new fund will bring significant benefits.
“Through this fund we encourage the IFC to act even more strongly in the least developed and fragile countries and at the early stage of funding operations. At the same time we can help Finnish stakeholders to gain access to projects run by the World Bank and IFC. Finland has a lot to offer especially in the fields of energy efficiency and new solutions. Now it is time to take this expertise to the world.”
The new fund will allow Finland to take advantage of the IFC’s broad expertise in the efforts to further develop private sector funding.
Vice President Nena Stoiljkovic thanked Finland for taking the lead in Europe in acquiring much-needed funding for climate actions. Stoiljkovic stressed the role of public development funding in attracting private investors. In the poorest countries there are no functioning markets and investments involve significant risks.
Finland will channel a total of EUR 114 million into the fund to be invested in projects during the next five years. To match Finland’s contribution, the IFC as a member of the World Bank Group will invest its own capital to all projects. As estimated at the seminar, the investment made by Finland should yield a total of at least EUR 0.5 billion to be used for climate projects.
Interview with Minister Mykkänen before the IFC visit to Finland (in Finnish)
Interview with Minister Mykkänen and Vice President Stoiljkovic at the announcement of the fund in Washington in October (in English)