European Commission proposes 100 million [euro] fund to boost energy efficiency and renewables

0 Comments | Renewable Energy Today, Oct 12, 2006

The European Commission recently proposed creating a global risk capital fund to mobilize private investment in energy efficiency and renewable energy projects in developing countries and economies in transition.

The Global Energy Efficiency and Renewable Energy Fund will accelerate the transfer, development and deployment of environmentally sound technologies and thereby help to bring secure energy supplies to people in poorer regions of the world.

These projects will also combat climate change and air pollution. The Commission intends to kick-start the fund with a contribution of up to 80 million [euro] ($100 million) over the next four years, and expects that financing from other public and private sources will take funding to at least 100 million [euro] ($125 million).

The Commission aims to overcome investment barriers for clean-energy projects in places such as Africa by tackling the lack of risk capital, which provides collateral for lenders. Such projects help meet the bloc's goal of fighting poverty and global air pollution.

Contact: European Commission, www.ec.europa.eu.