Blended Climate Finance
To address climate change challenges, economies need to transition to a low carbon and climate resilient mode. That requires some realignment from both public and private sector investment choices. In addition, technologies and business models that can support such transition face risk and cost barriers that often times prevent their initial development or subsequent scale-up and mainstreaming.
IIC provides companies pioneering in new climate investments with a set of climate finance sources which –along with IIC’s own capital- can provide the financial and technical assistance solutions needed to overcome those barriers. Such sources include the Canadian Climate Fund (C2F), the Nordic Development Fund (NDF), the Climate Investment Funds (CIF), the Global Environment Facility (GEF), and the Green Climate Fund (GCF), among other multilateral and bilateral funds.
Some examples of projects supported with blended climate finance include:
- Renewable Energy in Chile
- Energy Efficiency in Mexico
- Clean Energy in Honduras
- Climate-smart Agriculture in Mexico
- Adaptation in Central America
We also develop programs to address to support specific activities, technologies or market niches. Examples include:
- The Climate And Clean Energy Facility (CCEF)
- The Energy Efficiency Guarantee Mechanism (EEGM)
- Energy Efficiency And Self-Supply Renewable Energy Program (PEERA)
- Climate Smart Agriculture Fund (CSAF)
The Canadian Climate Fund (C2F), administered by the IDB and managed by the Inter-American Investment Corporation (IIC), is a US$250 million fund that co-finances climate-friendly private sector projects in Latin America and the Caribbean. The purpose of the fund is to spur private-sector investment offering a layer of capital that is more patient, flexible, and risk-tolerant than most commercial lenders are willing to provide.
The CIF are a group of programs providing concessional finance in support of public and private investments with climate change mitigation and adaptation value. The CIF aim to assist governments and companies pioneering the adoption of climate-smart technologies and business and financing models by helping them overcome the initial risk and costs barriers faced by first movers.
For this purpose, the CIF provide concessional debt, guarantees, equity and technical assistance resources, which -along with capital from the IIC Group- are structured on a case-by-case basis to support mitigation and adaptation investments aligned with the host countries CIF investment plans.
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