The UK’s Green Investment Bank (GIB) and the government have agreed to launch a £200 million global investment fund.
The new three-year pilot joint venture is in addition to the GIB’s pledge to invest £3.8 billion in UK projects.
GIB plans to initially target India, East Africa and South Africa, focusing on investments in energy efficiency and renewable energy.
It said its approach will match the business model it has developed for the UK, which means “investing in green commercial projects and mobilising additional private sector capital”.
GIB is finalising the programme and will work to create a team for managing it, which will be overseen by a board with members from DECC and the bank.
Energy Secretary Ed Davey said: “It is vital we use public climate finance to catalyse private investment into developing countries. By working with the Green Investment Bank, DECC will be able to draw on its unique mix of investment expertise, commercial discipline and close alignment of green policy objectives to maximise the impact and effectiveness of UK climate finance.”
The bank has so far invested in 42 projects and committed £1.8 billion of capital, which are expected to generate around £6.6 billion of new infrastructure investment.