Green Businesses in Developing World Get $60M Boost, Along With Microfinance
Thursday, October 20, 2011
The International Finance Corp. (IFC), a member of the World Bank group, is launching a $60 million equity financing mechanism to “promote homegrown green innovation in developing countries while encouraging the transfer of clean technologies from developed countries to developing countries.”
The Cleantech Innovation Facility will help small, highly innovative start-up companies that offer products or services that mitigate carbon emissions.
It will not only give them the capital they need, but will also provide technical assistance on governance, management, strategy and business development.
On average, investments will range between $3 million and $4 million, with a maximum of $10 million in any one company.
“This initiative is a practical way to address a market gap within climate finance,” says Mohsen Khalil, global head of IFC’s Climate Business Group. “It will support cleantech companies originating from or moving to developing countries – companies that have the potential to be scaled up and make a real impact, but cannot access commercial risk capital.”
Once this model is validated, Khalil says, private investors could be invited to expand those investments.
IFC says its invested about $150 million to date on cleantech equity investments.
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