Norway has committed NOK 80 million towards a new fund for investments in projects to combat climate change and promote clean energy in developing countries. The Global Energy Efficiency and Renewable Energy Fund (GEEREF) is a public-private partnership initiated by the European Commission. Norway and Germany are the first two public donors to the fund.
“We must do everything we can to help developing countries make a technological leap forward and increase their use of renewable energy sources such as solar energy and hydropower. Poor countries can reap huge economic and environmental benefits through energy efficiency measures and the use of renewable energy,” said Minister of the Environment and International Development Erik Solheim.
GEEREF will focus on investments in smaller projects, up to EUR 10 million. These are generally ignored by private investors and international financial institutions. Mr Solheim sees public-private partnerships as an important way of obtaining sufficient funding for adaptation to climate change in poor countries.
“This fund can be a prototype for investment mechanisms that will attract private investors who are looking for a return on their investments, and that will also give an economic return on the public funds that are invested,” added Mr Solheim.
The European Commission has already invested EUR 23 million in GEEREF. Further contributions totalling EUR 100 million have been pledged for the next four years. GEEREF is part of an umbrella fund structure, the European Initiative on Clean, Renewable Energy, Energy Efficiency and Climate Change Related to Development.