Germany to provide EUR 126m for decarbonisation in developing countries
Wind turbine. Source: Atlas Renewable Energy.
The German government will support the decarbonisation efforts in developing countries with an additional EUR 126 million (USD 127.2m) as part of the International Climate Initiative (IKI).
The amount will be provided to 14 ongoing projects focused on the transition to green energy and higher energy savings as well as the mobilisation of investments in sustainable and climate-friendly infrastructure, the Federal Ministry for Economic Affairs and Climate Action said on Friday.
As much as EUR 51 million of the additional amount will be provided to projects in the fields of renewable energy, energy efficiency, cooling and green hydrogen in developing and emerging countries in Asia and the Middle East and North Africa region as well as in Africa and Latin America.
The remaining EUR 75 million is meant for the further mobilisation of large-scale investments and mechanisms for carbon pricing. About EUR 30 million of this amount will go to the Emerging Markets Climate Action Fund (EMCAF) of development bank KfW Entwicklungsbank and the European Investment Bank (EIB).
The Global Climate Protection Fund (GCPF), the 30 by 30 Zero Scale Up Climate Finance and the Partnership for Market Implementation Facility will each be supported with a further EUR 15 million.
Commenting on the announcement, Germany's economy minister Robert Habeck said: "The high world market prices for fossil energies as a result of the Russian war of aggression are having an impact not only in Germany and Europe, but also in developing and emerging countries, where they encounter significantly lower incomes. This is why it is more important than ever to drive forward the global energy transition with even greater commitment."
Anna is a DACH expert when it comes to covering business news and spotting trends. She has also built a deep understanding of Middle Eastern markets and has helped expand Renewables Now's reach into this hot region.