Canada finally gets into the development finance game — will it work?
On December 4, the government’s finance development arm, FinDev Canada, announced its second-ever deal: a US$20 million investment in renewable energy initiative Climate Investor One. It was Canada’s first investment in blended finance, a type of financing intended to attract private investors to what would otherwise be high-risk investments in developing countries.
FinDev Canada, Canada’s development finance institution (DFI), was launched earlier this year, and has pledged to invest $300 million over five years. Canada is the last G7 country to create a DFI.
While Global Affairs Canada wrestles with how to best structure a separate $1.5 billion promised for innovative financing programs, which will include a Partnership for Gender Equality and the Sovereign Loan Fund, FinDev Canada, a branch of Export Development Canada (EDC), is already taking steps into this important new financing arena that many hope will fill the enormous gap in funding needed to achieve the Sustainable Development Goals (SDGs), or 2030 Agenda.