EIB launches the International Climate Initiative Fund to support investment in climate change mitigation and adaptation in developing countries
13 November 2019
First contribution from the German Environment Ministry BMU
At its 2019 Annual Donors conference, the European Investment Bank announced the creation of the International Climate Initiative Fund (IKI Fund), which seeks to mobilise finance for climate change mitigation and adaptation activities in developing countries and emerging economies.
The Fund already received a first EUR 9 million contribution from the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU).
The IKI Fund aims to catalyse investment that will support more ambitious climate action projects and reach out to a broader array of public and private sector final beneficiaries through partial portfolio guarantees (financial instrument providing credit risk protection on a portfolio basis) and technical assistance. This should help developing countries and emerging economies implement their Nationally Determined Contributions to climate action, at the heart of the Paris Agreement.
The Fund will provide risk-bearing capacity to facilitate investment with high climate mitigation and adaptation impacts, and support promoters in their preparation of bankable projects. It will also back investment in technological and non-technological innovation.
Eligible investment include climate change mitigation activities to reduce, limit or sequester greenhouse gas emissions by supporting the shift towards low-carbon modes of transport, the transition to renewable energy production and energy efficiency, as well as innovative low-carbon technology solutions.
Eligible climate change adaptation activities shall lower the current and expected risks or vulnerabilities posed by climate change in agriculture, water and wastewater systems, energy, transport, costal riverine as well as infrastructures.
The IKI Fund complements the International Climate Initiative, launched in April 2008 by the BMU, which provides grant funding to national and international organisations and financial institutions implementing climate action projects in developing and newly industrialising countries, as well as in countries in transition.
The EIB Group has stepped up its level of precaution at its headquarters in Luxembourg and in its external offices. All staff will telework as of 16 March. A small number of staff whose physical presence on EIB premises is indispensable will continue to be present on the EIB campus. The decision aims to protect the health of employees and ensure the continuity of the EIB Group’s activity.
On Wednesday the EIB identified its first case of one staff member who tested positive for corona virus.
As a precautionary measure, the EIB decided not to hold the meeting of its Board of Directors planned for Thursday 12 March in person. Decisions on the Board’s agenda will be taken by written procedure. The Bank has put in place measures to prevent disruption to its governance or operation approval schedule.
On Monday 2 March, the former President of the European Council, Donald Tusk, visited the EIB in Luxembourg on a joint invitation from the Bank, the European Stability Mechanism (ESM) and the Court of Auditors.