The UK Government has earmarked £50 million in funding to help developing nations tackle climate change.
The money will be transferred from the existing £3.87 billion that has already been committed to the International Climate Fund (ICF).
The funding has been granted to the Climate Development Finance Facility (CDFF), which aims to encourage private sector investment in renewable projects in poorer countries where finance is “limited, costly and time-consuming”.
CDFF helps provide funds for medium to large scale – between 25MW-75MW – green energy projects in developing nations.
“It will provide development funding to new renewable energy projects, funding to support them during construction phase and a re-financing facility to attract institutional investors such as pension funds,” DECC said.
CDFF was developed by the Global Innovation Lab for Climate Finance – a platform that brings together governments and investors to identify and tackle the barriers to low carbon investment.