A Climate Fund

Europe development agencies to launch climate fund

Fri, Apr 30 2010LONDON (Reuters) - A group of European development agencies will launch a joint climate change fund to promote low-carbon and sustainable investments in emerging countries, the agencies said on Thursday.

The European Investment Bank (EIB), France's Agence Francaise de Developpement (AFD) and 12 members of the European Development Finance Institutions (EDFI) will sign a memorandum of understanding to launch the Interact Climate Change Fund at a meeting in Bruges, Belgium on Friday.

The fund will create a portfolio of climate friendly private sector investments across countries in Africa, the Caribbean, Asia-Pacific and Latin America, the agencies said in a statement.

"The initiative has the twin aim of promoting sustainable development of private sector climate change projects and strengthening meaningful co-operation between (the agencies)," they said.

The EIB in December offered to lend southern Mediterranean states 5 billion euros ($6.71 billion) over three years to invest in renewable energy.

Renewable energy sources such as solar and wind would help limit growth in greenhouse gas emissions and countries such as Morocco have committed to heavy solar energy investments.

The EIB, with three banks including Lloyds Banking Group, also said last November they will provide 1.4 billion pounds ($2.17 billion) in loans to help finance onshore wind projects in Britain. (Reporting by Michael Szabo; Editing by William Hardy)