IFC launches $60m fund to boost clean-tech in emerging markets

The International Finance Corporation (IFC), has launched a new financial mechanism that blends private and public funds to promote homegrown “green” innovation in developing countries.

According to the IFC, the fund will encourage the transfer of clean technologies from developed countries to developing countries.

“The $60 million Cleantech Innovation Facility will target small, highly innovative start-up companies that offer products or services that mitigate carbon emissions. It builds on IFC’s equity investments in this sector, which now total about $150 million in commitments,” said the IFC on its website.

The facility, the World Bank Group member said includes concessional funding from the Global Environment Facility, allowing work with companies at an earlier stage of development. “On average, investments will range between $3 million and $4 million, with a maximum exposure of $10 million in any one company.”

“This initiative is a practical way to address a market gap within climate finance,” said Mohsen Khalil, global head of IFC’s Climate Business Group.  “It will support clean-tech companies originating from or moving to developing countries—companies that have the potential to be scaled up and make a real impact, but cannot access commercial risk capital.”

By Ekow Quandzie