The Interact Climate Change Facility (ICCF) builds on the successful model of EFP, and finances renewable energy and energy efficiency projects in the private sector in developing countries and emerging economies. It is funded by the French Development Agency (AFD), the European Investment Bank (EIB) and several EDFI members.
The ICCF seeks to promote the use of renewable energy and clean technologies as well as energy efficiency in developing and emerging countries by providing long-term financing. By expanding access to clean, reliable and affordable electricity in these countries, where the demand for electricity is often larger than supply, the ICCF aims to boost economic growth, enable companies to create new jobs and promote a more equitable distribution of income. Demonstrating the economic viability of projects, the ICCF also aims to act as a catalyst to attract additional financing, especially in the energy sector in developing countries.
Like with EFP, the ICCF’s operational structure is characterised by an efficient fast-track process with low administrative overheads. The ICCF is an innovative co-investment facility capable of mobilising significant amounts of long-term funding for renewable energy and energy efficiency projects.
In November 2016, the ICCF was replenished with €335 million which are available to be committed until October 2019 on a first come first serve basis.
Since its establishment in 2011, a total of 23 projects at a value of €377m have been approved by ICCF at the end of 2nd quarter 2017, of which 43% is in wind power generation, 20% in solar power generation, 13% in hydro power generation and 13% in the improvement of energy efficiency. Examples of projects include solar energy in India, energy efficiency in existing power generation in Côte d’Ivoire and wind power in India and Kenya.
ICCF has contributed to reducing carbon emissions by almost two million per year and installing 1.147MW of additional renewable energy capacity.
Beyond its financing operations to fight climate change, ICCF enables its members to share their practices and tools, and aligning their strategies. This initiative today stands out as an example in terms of financial and technical climate cooperation among donors.
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