The International Finance Corporation (IFC) and the government will invest around $150 million (95 million pounds) in the IFC Climate Catalyst Fund LP, to provide capital to low-carbon projects in emerging markets, the World Bank investment arm said on Friday.
IFC has approved an investment of up to $75 million in the fund, while the UK government has approved 50 million pounds ($78.5 million) from the UK's International Climate Fund as part of its Climate Public-Private Partnership initiative.
The Climate Catalyst Fund will be seeking a diversified portfolio of private equity funds managed by established and emerging fund managers, and making direct investments in early and growth-stage companies which are developing technologies to help fight climate change, the IFC said in a statement.
We hope that the fund will help make the business case for these kinds of investments and encourage additional private sector investment into innovative climate projects, said Lars Thunell, IFC executive vice president and chief executive.
Since 2005, IFC has invested in over 340 renewable energy and efficiency projects in about 70 countries, committing a total of $11.6 billion.
IFC has approved investments in 12 climate-focused private equity funds, for a total of $225 million.
(Reporting by Nina Chestney; Editing by Alison Birrane)