Finland pledges support in combating climate change in North Africa
By Omotayo Edubi
Finland offers to support its role in the fight against climate change through an investment in a new partnership launched by the European Bank for Reconstruction and Development (EBRD). The funding will be targeted at climate action in North Africa.
Finland will give out the sum of EUR 39.73 million in funding for the High Impact Partnership on Climate Action (HIPCA) launched by the EBRD.
The investment will be made from the appropriation for development policy investments, added to the investment, Finland will award EUR 2 million for technical support related to projects under HIPCA. In its funding, Finland emphasises the climate action carried out in North Africa.
Finland is a long-term supporter of the EBRD. The HIPCA fund represents a new type of partnership, strengthening Finland’s role in the EBRD. Through the fund, investments will be made in projects that reduce greenhouse gas emissions and strengthen climate resilience. Through the investments in the fund, it will be possible to build renewable energy systems, develop sustainable food systems and invest in the development of urban environments, including public transport. This will also leverage private sector funding for climate action. Other pioneering financiers of the fund are the Netherlands and Taiwan.
“The investment forms a part of the implementation of our Africa Strategy and contributes to the achievement of our climate policy objectives. The fund will strengthen Finland’s position in the fight against climate change and increase its visibility. The funding is also expected to promote connections between the Finnish private sector and development finance around the world,” says Minister for Development Cooperation and Foreign Trade Ville Skinnari.
Finland’s investment in the HIPCA fund will be tied to projects that will be carried out during a six-year investment window. The capital together with the interest on the borrowed loan through the fund will return to Finland once a year. The last returns will arrive in Finland 20 years after the end of the investment window.
