EIB and European DFIs scaling up their cooperation through The Interact Climate Change Facility (ICCF) and European Financing Partners (EFP)
EDFI members extend their collaboration with development banks under two co-financing facilities for climate and development: ICCF and EFP. These global co-financing platforms (with a special focus on ACP countries for EIB) provide long-term loans to projects in the private sector. The new legal framework will improve the decision-making process of both facilities even increasing its flexibility and reliability for Financing Partners.
“The continued efforts under ICCF will help EDFI members to scale up contributions to climate change mitigation and energy access. By pooling resources and expertise with AFD and EIB, we have increased our capacity to finance climate-related projects in developing countries, which is a top priority for the DFIs. With the EFP, transfer of competence and co-financing between the European DFIs will continue to intensify and transactions will become even more efficient,” said Søren Peter Andreasen, CEO of EDFI.
The European Investment Bank (EIB), Agence Française de Développement (AFD) Group and ten EDFI members (BIO, Cofides, DEG, Finnfund, FMO, Norfund, OeEB, Proparco, SIFEM, and Swedfund) are extending the mandate of ICCF to continue their collaboration to fight climate change. Together, they are repleninign the facility with EUR 141 million. ICCF was first launched in 2011 to support renewable energy and energy efficiency projects in developing countries that need international investment to support economic development and the low carbon transition. Since 2011, ICCF has successfully contracted a total of 33 projects across 18 countries for a total amount of €460 million. Half of the projects financed are supporting solar power projects (e.g., Terra Solar in Honduras), 35% wind power solutions (e.g., Lake Turkana in Kenya) and 15% deal with hydro power and energy efficiency.
“We are at a critical time and European citizens expect us to act. The European Investment Bank is the EU Climate Bank and the climate challenge is global, so we are pleased to extend the ICCF in partnership with AFD and the EDFIs because this platform is an essential piece in the European action towards a greener, more sustainable future also involving the African, Caribbean and Pacific regions. Since its creation, ICCF has driven European financial cooperation to target Climate Action and EIB is delighted to continue to support high impact projects through this platform.” Maria Shaw-Barragan, Director for Lending in ACP, Asia and Latin America, EIB.
In parallel, EFP has also been extended until 2022 and replenished through a contribution of EUR 80 million from the EIB, Cofides, DEG, FMO, Norfund, and Proparco to co-finance operations in OECD DAC list countries.
“At a time when climate action is most needed, ICCF is a financing platform that illustrates the effectiveness of the cooperation between European bilateral and multilateral development finance institutions in accelerating the deployment of renewable energy to fight climate change. The extension of the Facility’s mandate confirms our joint commitment to the redirection of financing flows towards climate action in our partner countries,” Marie-Hélène Loison, Deputy Director of Operations, AFD.
Since 2003, EFP’s streamlined increased the efficiency of cooperation and expertise sharing between European DFIs and the EIB. The partnership between European DFIs and the EIB has promoted sustainable private sector development through 41 projects, so far, at a value of EUR 541 million across 16 countries. 40% of the financing has been allocated to financial intermediaries, and infrastructure and agribusiness represent other key sectors supported by this facility. Successful investments contributed to the development of a geothermal power station in Kenya and several telecommunications companies across Africa and the Caribbean.
“I am very proud of the success of this green, efficient co-financing facility amongst leading European development institutions. The aim to fight climate change and to preserve our planet for future generations has become even more paramount over the last years. Therefore ICCF, which builds on the successful model of the European Financing Partners (EFP), is revamped to deliver more value for green impact, scaling up its transformative role to fight climate change in emerging markets by offering innovative financing to the private sector, benefitting especially poor people that are disproportionally impacted.” Idsert Boersma, FMO’s Director of Partnerships for Impact and the Chair of the Boards of Directors of ICCF and EFP.