GEF, IFC to Support Climate Change Mitigation Business Models
20 October 2011: The International Finance Corporation (IFC), part of the World Bank Group, will launch a US$60 million financial mechanism to support alternative business models for climate change mitigation in developing countries, providing companies with strategies and tools to provide products and services aimed at reducing greenhouse gas (GHG) emissions.
The Cleantech Innovation Facility (CTIF), co-sponsored by the IFC-Global Environment Facility (GEF) Earth Fund, aims to support, via advisory services and concessional finance, market transformation through testing or scaling up new technologies, new business models, or financial mechanisms that mitigate climate change or preserve biodiversity.
The IFC-GEF Earth Fund is the first operational platform under the GEF Earth Fund and comprises US$10 million contributed by IFC and US$30 million contributed by the GEF. The CTIF will help companies from emerging economies to create services and products dealing with: recycling and waste management; water capture, treatment, supply and efficiency; smart systems; green transport; green buildings; sustainable agribusiness; and cleaner production technologies. IFC's investment in the alternative business models will range between US$3-4 million, with a maximum exposure of US$10 million for companies responding to the IFC's initiative requirements. The GEF's concessional funding will allow the IFC to take more risk and work with earlier stage, higher risk companies. [GEF Press Release] [IFC Project Website]