Latest news with #climatefund
Reuters
17-07-2025
- Politics
- Reuters
World's oldest climate fund targets wildlife bonds for every country in Africa
NAIROBI, July 17 (Reuters) - The world's oldest multilateral climate fund, the Global Environment Facility, is planning a new wave of wildlife conservation bonds in a bid to help African countries save endangered species and ecosystems. Wildlife bonds, which provide low cost funding in return for cutting poaching or other measures, were pioneered in 2022 with a World Bank-backed rhino bond and have seen a number of other examples since. There was an issue targeting chimpanzee protection in Rwanda last year, and last month the GEF approved one for lemur conservation in Madagascar. Fred Boltz, head of programming at GEF, which is linked to the World Bank, told Reuters on the sidelines of a meeting of African environment ministers that it aims to do one for every one of the 54 countries in Africa. He said such a move would require an investment of $150 million from GEF, which would then be leveraged 10 times to provide a total of $1.5 billion for conservation efforts through other borrowing. Money borrowed using wildlife bonds does not typically go onto the books of beneficiary governments, meaning they can offer much-needed financing to poorer countries, climate finance experts say. They usually target emblematic species in order to appeal to specialist investors and wealthy philanthropists and their payouts are directly linked to conservation - the better the result the less the governments are usually required to pay out. But GEF now hopes they can be expanded to include entire ecosystems such as wetlands, Boltz said. The push by the fund, which was formed after the landmark Rio Earth Summit of 1992, comes as aid and development funding cuts by the United States and other major economies threatens some conservation projects. "Many countries are asking, are suggesting, that in this tough official development assistance environment, that maintaining the last level of (species) replenishment may be difficult," Boltz said, "and that we might need to try to do more with less". The GEF has in total invested $7.7 billion in Africa in various projects, such as an $85 million effort to fight desertification in the Sahel region. It is currently urging donors to replenish its cash for its next four-year cycle of programmes, starting next year. Its last fundraising for its current cycle raised $5.3 billion - an increase of more than 30% from its last operating period amid a surge of support for international efforts to meet nature and climate targets. That funding round got money from 29 countries, with the U.S. among the biggest donors, contributing $700 million.
Bloomberg
04-07-2025
- Business
- Bloomberg
Biggest Climate Fund Approves Record Allocations as US Withdraws
The world's biggest climate fund said it approved record allocations for projects in a year when the US pulled $4 billion it had pledged to the organization. At a board meeting in Papua New Guinea, the Green Climate Fund green-lighted $1.225 billion for initiatives ranging from reducing the impacts of desertification in Mauritania to developing green bond markets.
News24
13-06-2025
- Business
- News24
Climate Investment Funds approve R47bn coal-exit plan for SA
A World Bank-linked climate fund will back South Africa's plans to decommission coal power stations. The approval by Climate Investment Funds will unlock R47 billion to boost the energy transition. The US did not oppose the approval of the funding, says an official. For climate change news and analysis, go to News24 Climate Future. A World Bank-linked climate fund has backed South African plans to cut its reliance on coal, unlocking up to $2.6 billion (~R47 billion) in financing and giving the nation's energy transition an unexpected boost. The approval of the updated plan by the Climate Investment Funds, which was stalled after South Africa last year asked to delay the closure of three coal-fired power plants to ease an energy crisis, will see the CIF disburse $500 million (~R9 billion) to the country. That clears the path for as much as $2.1 billion (~R38 billion) from multilateral lenders including the World Bank and the African Development Bank, plus other sources. 'CIF's Clean Technology Fund Trust Fund Committee approved an update to South Africa's Accelerating Coal Transition investment plan' on 11 June, the fund said in a response to queries. READ | PIC leads a R660 million pledge for green hydrogen Under the plan, it said South Africa can now put forward detailed costing for projects it had outlined and then get approval for their funding from the trust. It referred additional questions on financing to the South African government, which confirmed that the plans are still in place. At the Presidential Climate Commission quarterly meeting on Friday, Rudi Dicks of the Just Energy Transition Project Management Unit noted the CIF board's approval of the plan. The US did not oppose the approval, as that was a concern, Bloomberg previously reported. South Africa, back around September, asked to alter the plan, which had originally been endorsed in 2022. That request delayed approval until after the 20 January inauguration of US President Donald Trump and subsequent pullback by the US from a range of international climate initiatives. The actions of US representatives then thwarted an opportunity to support the South African plan in March, people familiar with the situation said at the time. 'Consensus has been reached. But however, the US has indicated that it does not as an individual country support the revised proposal that we've made…,' said Dicks. South Africa had pushed out the decommissioning schedules out to 2030, Dicks explained. He added that the CIF approval is important given that the funding is the initial drive for the just energy transition. The $500 million would have a multiplier effect to unlock a further $2.6 billion, Dicks emphasised. 'Our diplomacy has paid off in my view, and unlocking that through the CIF board has been an important step.' The financing will play an important role in South Africa's energy transition. The country relies on coal for about 80% of its electricity generation and has the most carbon-intensive economy of any country in the G20. Eskom is the recipient of the funding aimed at decommissioning Camden, Grootvlei and Hendrina in 2030. READ | Decision nears on R47bn of climate funds for South Africa Of the 15 contributors to the $12.5 billion CIF the US was the biggest as of end-2024, having provided $3.8 billion. It's closely followed by the UK at $3.6 billion. Germany, Japan and Canada have each contributed more than $1 billion. Disbursements by the CIF can be blocked if any of the nations that have contributed to the funds object or ask for more time to seek additional details on what the funds will be used for, and under what conditions. Approval can be granted if a country abstains rather than votes against the plan. It's unclear how voting went on 11 June. The US State Department referred queries to the Treasury. The Treasury didn't respond to an earlier request for comment. Earlier this year the US withdrew from plans backed by rich nations to help Indonesia, Vietnam and South Africa reduce their reliance on coal. That step cost South Africa $1 billion in loans. Shortly after his inauguration, Trump promised to yank the US out of the Paris Agreement, an international climate pact. He also cancelled a pledge of $4 billion to another international climate institute, the Green Climate Fund. Separately, relations between the US and South Africa have been strained. Trump also halted aid to the country and his top officials have boycotted G20 meetings hosted by South Africa this year.
Bloomberg
13-06-2025
- Business
- Bloomberg
Climate Investment Funds Approve $2.6 Billion Coal-Exit Plan for South Africa
A World Bank -linked climate fund has backed South African plans to cut its reliance on coal, unlocking up to $2.6 billion in financing and giving the nation's energy transition an unexpected boost. The approval of the updated plan by the Climate Investment Funds, which was stalled after South Africa last year asked to delay the closure of three coal-fired power plants to ease an energy crisis, will see the CIF disburse $500 million to the country.
Reuters
03-06-2025
- Business
- Reuters
UAE climate fund Altérra backs Absolute Energy in Italy renewables project
LONDON, June 3 (Reuters) - Alterra, one of the world's biggest private climate funds has made its second direct investment in Europe through Italian renewable energy firm Absolute Energy and plans more deals ahead, its chief executive told Reuters. The fund, set up in 2023 by the United Arab Emirates with $30 billion, has so far invested $6.5 billion, mostly through climate and transition funds run by leading global investment firms BlackRock (BLK.N), opens new tab, Brookfield ( opens new tab, and TPG (TPG.O), opens new tab. The deal for Absolute Energy will have the fund investing $50 million in direct equity from its Acceleration Fund alongside U.S. infrastructure firm I Squared Capital. The investment will help accelerate the development of an initial 1.4 gigawatts in solar and battery storage across Italy. Until now, Alterra had only directly invested in two companies - $100 million each in Indian renewables platform Evren and French renewables company Neoen- but it now plans to scale up, Majid Al Suwaidi said. "We are now transitioning from the first phase of the development of Alterra into a new phase in our work," he said. "This is our third co-investment so far in rapid succession... it's really charting a new path for us." Absolute Energy's initial project is expected to reduce climate-damaging emissions by up to 380,000 tons a year and it has a broader development plan of 6 GW, Alterra said. Set up at the UAE-hosted COP28 climate talks, Alterra, which now has a team of 14, aims to mobilise $250 billion globally by 2030 to help accelerate the energy transition. Al Suwaidi said finding deals which fit its mandate had been "more challenging" than expected and that it was looking at smaller deals of $50 million or more in the areas of industrial decarbonisation, climate technology, sustainability and renewable energy "to get things going". "We're becoming smarter about what we want from a deal and clearer about what we are looking for," he said. Alterra said for every dollar invested by its Acceleration and Transformation funds it has so-far attracted $8 and $4, respectively, from other investors.
