A new fund awaits private businesses that want to invest in green energy projects in developing countries.
On Friday (Jan. 27), the United Kingdom will launch its Climate Public Private Partnership fund at the World Economic Forum in Davos, Switzerland. The fund, part of a collaboration between the International Finance Corp. and the Asian Development Bank, will provide seed money for green energy projects.
The United Kingdom is putting in 110 million pounds ($172 million) of capital to two commercial private equity funds, which aim to bring about low-carbon investments in developing countries by attracting financing for commercial solar, wind and hydroelectric power plants.
U.K. Secretary of State for International Development Andrew Mitchell told the Financial Times the fund will help private sectors reduce the risk of investing in such projects. IFC Executive Vice President Lars Thunell, meanwhile, hopes the fund will encourage private sector investment in innovative climate projects.
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