IIC and NDF establish a trust fund to support climate change mitigation by promoting energy efficiency in Central American SMEs
03/20/2010IIC-NDF Trust Fund will support IIC’s GREENPYME energy efficiency program in Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua
Cancun, Mexico - On March 21, 2010, the Inter-American Investment Corporation (IIC) and the Nordic Development Fund (NDF) signed an agreement to establish the IIC-NDF Trust Fund with a contribution from NDF of €2,200,000. The new fund will finance the IIC’s GREENPYME initiative, primarily in Central America. The signing ceremony took place during the twenty-fifth annual meeting of IIC’s Board of Governors.
GREENPYME is an IIC program that promotes a more rational use of energy resources and renewable technologies by Latin American and Caribbean SMEs, aiming to improve their competitiveness and sustainability.
NDF is a joint development institution of the Nordic countries (Denmark, Finland, Iceland, Norway and Sweden) with the mandate to finance climate change interventions in developing countries. For more information, please visit www.ndf.fi.
Helge Semb, Managing Director of NDF, notes that in many sectors there are ample opportunities to save energy and make its use more efficient and thereby bring many economic, environmental, and social benefits. "GREENPYME will contribute to these benefits," affirms Mr. Semb.
"GREENPYME can be seen as a continuation of NDF’s previous commitments and the Nordic countries’ long cooperation in the region. In addition to the climate change focus of the program through contributing to the reduction of CO₂ emissions, the regional approach of GREENPYME will strengthen regional development and integration in Central America," states Satu Santala, Member of the NDF Board of Directors.
The IIC-NDF Trust Fund agreement was signed by Satu Santala and Helge Semb on behalf of the Nordic Development Fund, and by Jacques Rogozinski, General Manager of the IIC. Present as well during the signing ceremony were Leena Viljanen and Mark Oliver Strauss-Kahn, Executive Director and Deputy Executive Director, respectively (Denmark, Finland, France, Norway, Sweden and Switzerland); Ingrid Glad, Governor (Norway); Leena Klossner, NDF Deputy Director; and Jorge Roldán, Chief of the IIC’s Technical Assistance and Strategic Partnership Division.
According to Mr. Rogozinski, "The purpose of the GREENPYME program in Central America is to tap the region’s energy savings potential. The program will provide SMEs with information, training, analytical tools, technical consulting services, and energy audits. It will also improve their access to financing for clean investments. We believe that GREENPYME’s work in Central America will directly benefit more than 12,000 SMEs over the next four years, by helping them save more than 400 million kWh of electricity. At current average prices, this translates into US$50 million in savings. Decreasing energy consumption among SMEs will also reduce CO₂ emissions by more than 350,000 tons throughout the life of the program. The IIC will seek to make the program sustainable by forging alliances with financial and technology partners and other local players interested in providing SMEs with efficient solutions."
About the IIC
The IIC is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) Group. It provides financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. In 2009, the IIC reached US$1.4 billion in assets and approved forty operations channeling US$299.8 million to SMEs in the region. The IIC’s mission is to promote the economic development of its regional member countries by encouraging the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size. For more information on the IIC’s activities, please visit www.iic.int
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