The Interact Climate Change Facility (ICCF) will fund private sector operations, proposed by any of the EDFI shareholders. ICCF will finance up to 75% of a project proposal with a maximum of 45 million, while the remaining part will be financed by the proposing EDFI member. The total finance capacity of this initiative will be 400 million, with 300 million provided by ICCF and 100 million directly by the EDFI members.
This joint venture builds on the on-going cooperation by European development finance institutions through European Financing Partners. Created in 2003, by the European Investment Bank and EDFI members, this initiative has double aim of promoting sustainable development of the private sector in ACP States and strengthening co-operation between eligible European Development Finance Institutions being BIO (Belgium), CDC (United Kingdom), COFIDES (Spain), DEG (Germany), FINNFUND (Finland), FMO (the Netherlands), IFU/IØ (Denmark), Norfund (Norway), OeEB (Austria), PROPARCO (France), SIFEM (Switzerland), SWEDFUND (Sweden) and the European Investment Bank. European Financing Partners has so far provided 29 private sector projects in Africa, the Caribbean and the Pacific with 392 million.
The Interact Climate Change Facility will invest in climate friendly private sector projects in poor countries. It demonstrates the financial attractiveness of climate-friendly projects in developing countries and will catalyse long-term investments. This approach will promote the use of clean technology as an integral part of economic development. The facility contributes to sustainable economic development by providing long-term financing for renewable energy and energy efficiency projects in poor countries suffering from energy shortages.
