P-Plus Special on FMO's innovative climate finance funds

25 March, 2019

Original Source: FMO

Based on the calculations that industrialized countries need to invest 100 billion USD annually to help developing countries with climate adaptation, the Dutch Court of Auditors estimates that the Dutch climate change bill will be EUR 1.25 billion annually. About half of these investments will need to come from public funds, the other half from private investments.

FMO is one of the most important instruments of Dutch climate policy focussing on developing countries. In the coming year, FMO wants at least 32 percent of all its investments to be "green". Meaning: investments focused on sustainable energy, less CO2 emissions and resistant to climate change. To achieve this goal, FMO uses a number of innovative funds to help emerging countries, such as Kenya, to realize wind farms, solar parks, hydropower plants, and agroforestry. These investments are aimed at attracting private investors.

FMO demonstrates that investing in sustainable energy and the climate is not only wise but can also be profitable. Revolving funds such as Building Prospects (formerly known as Infrastructure Development Fund) and the Access to Energy Fund achieve very high repayment percentages, well above 100 percent.

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