Just a few days ago, the European Investment Bank (EIB), the financing arm of the EU and its 27 member countries, formally joined the ranks of other multilateral development banks and the World Bank in creating its own climate change fund — thus contributing to the proliferation of new climate funds, supporting the claim of other development organizations to be best equipped to manage large climate financing sums and thereby further undermining a future leadership role of the UNFCCC and its financing mechanisms in the emerging global climate finance architecture.
The new Interact Climate Change Fund, ICCF was established in cooperation with the French development agency (AFD) as well as a group of 15 bilateral European development groups organized in the Association of European Development Finance Institutions (EDFI). Focus of the new Fund, whose finance volume was not publicly disclosed, are private sector investments in climate change projects in Africa, the Caribbean and the Pacific, Asia and Africa, all to be undertaken in the course of this year, which the ICCF aims to support by matching investment amounts. The Fund will act as “catalytic lead investor” in renewable energy and clean technology projects to extend energy access and provide energy stability in developing and emerging market economies.
