The UK government has committed funding worth £50 million to the Climate Development Finance Facility (CDFF) in order to help developing countries combat climate change.
The Department of Energy and Climate Change confirmed the funding on Thursday, stating that the sum is to be allocated from existing funding dedicated for the International Climate Fund and will be used to help developing nations adapt to the effects of climate change.
The CDFF has been established in order to stimulate private sector investment into renewable energy projects in countries where project finance is otherwise difficult to come by, and will help to establish solar PV projects in emerging nations.
Medium- to large-scale renewable energy projects of between 25–75MW will be aided by the facility including development and construction funding, while a re-financing facility has also been established to attract institutional investors.
“By combining the several stages of investment finance into one facility, the CDFF provides a cradle-to-grave public-private financing solution,” DECC’s statement read.