Swedfund increases commitment to fighting climate change

On October 12, Swedfund increased its financialcommitment to the Interact Climate Change Facility (ICCF) by providing anadditional MEUR 5 for climate change projects in emerging markets.

ICCF is a facility which finances renewable energyand energy efficiency projects in the private sector in developing countries. Launchedin 2011 and funded by a number of development finance institutions, ICCF seeksto promote the use of clean technology as a cornerstone of sustainabledevelopment. By demonstrating the financial viability of projects, ICCF alsoaims to be catalytic and to attract additional sources of funding for thedevelopment of sustainable energy in emerging markets. Swedfund is nowincreasing its commitment to fighting climate change by providing furtherfunding to ICCF.

“Emergingmarket economies risk being severely affected by climate change, but at thesame time the impact of early-stage action is significant,” said GunillaNilsson, Senior Investment Manager at Swedfund. “By providing long-termfinancing to sustainable investments in the world’s poorest countries, Swedfundactively supports the development of a more energy efficient and climatefriendly global economy.” 

Access toclean, reliable and affordable electricity is one of the fundamental driversfor development. It underpins economic growth and is central to a number ofother issues ranging from climate change to a more equitable distribution ofincome.

In manyemerging market economies, demand for electricity far outstrips supply. As aresult, both companies and individuals are often forced to create their ownelectricity solutions, be it in the form of small-scale diesel generators forproduction plants, or wood burning stoves for food preparation. This hampersthe growth prospects of companies, which in turn limits the creation of jobs. Alack of adequate electricity also curtails the amount of time that individualscan spend on more income-generating activities and may also be a health hazard.

Increasedaccess to electricity is therefore crucial to the continued growth of emergingmarkets and the fight against poverty. Ensuring that electricity production and distribution is conducted in anenvironmentally sustainable manner is essential to achieving a long-termsolution to the world’s energy problems.