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IFC, UK invest in IFC Climate Catalyst Fund

The World Bank's International Finance Corporation (IFC) and the UK government will invest in the IFC Climate Catalyst Fund, a private equity fund focused on providing capital for companies delivering resource efficiency and low-emission products and services in emerging markets.

"IFC's Board has approved an investment of up to $75 million in the fund. The UK government has approved an investment of £50 million from the UK’s International Climate Fund as part of its Climate Public-Private Partnership, or CP3, initiative", said IFC in a press release.  

IFC said that the Climate Catalyst Fund will seek to assemble a diversified portfolio of private equity funds managed by established and emerging fund managers. It also intends to make direct co-investments in early and growth-stage companies that are developing innovative technologies and helping reduce climate change.

“Addressing climate change is a strategic priority for IFC, and private equity is well suited to jump start climate-friendly investment in emerging markets,” said Lars Thunell, IFC Executive Vice President and CEO. “We hope that the fund will help make the business case for these kinds of investments and encourage additional private sector investment into innovative climate projects.”

The UK’s International Development Secretary Andrew Mitchell said: "For too long the power of the private sector has been forgotten in the fight against global challenges. Climate change affects us all—but it will hit the poorest the hardest. Our support will reduce the risk of investing, helping the private sector to tackle this global problem by investing in some of the fastest growing economies in the world.”

IFC provides investments and advisory services to businesses in the renewable energy and resource efficiency sectors in emerging markets. Since fiscal 2005, IFC has invested in over 340 such projects in about 70 countries, committing a total of $11.6 billion, including $1.6 billion in fiscal 2011 alone. 

Source: IFC