June 29 (Renewables Now) - The Canadian government is contributing CAD 250 million (USD 188.3m/EUR 162.4m) towards a programme with the International Finance Corporation (IFC) aimed at unlocking private climate investment in emerging markets.
The IFC said today the funds under the Canada-IFC Blended Climate Finance Program will be used to mitigate risks hampering private investment in areas such as climate-smart agriculture, renewable energy and resilient infrastructure.
In January, Canada and World Bank Group member IFC agreed a similar partnership but for renewable energy in Sub-Saharan Africa. In both cases the idea is to use a limited amount of public funds to drive significant volumes of private investments.
“Using blended finance in a smart and strategic way can mobilize significant private capital to tackle climate change in countries where technologies or business models are untested,” Philippe Le Houérou, chief executive of IFC.
(CAD 1 = USD 0.75/EUR 0.65)