PARIS – During the Lima-Paris Action Agenda from COP21, The German Environmental Ministry announced it will provide €30million to the hedging specialist TCX, one of the implementing entities of the Long-Term FX Risk Management Instrument alongside IFC.
The Ministry will channel funds through KfW Development Bank. Starting in 2016, TCX will use these funds for innovative and new hedging instruments for SE4All projects that promote renewable energy and energy efficiency investments in Sub-Saharan Africa. These funds are expected to mobilize up to $1.3 billion US dollars and achieve up to 500 000 tonnes of CO2 emissions reductions per year through 2025. Germany’s investment is a contribution to the African-led “Renewable Energy in Africa.”
In a speech at the Lima-Paris Action Agenda, CEO of TCX Ruurd Brower said, “My warmest thanks to the German Government and taxpayers for their trust in our ability to make a difference. With their help, TCX will protect US$1.3 billion worth of investments in the coming years.”
The Global Innovation Lab for Climate Finance is a global initiative that supports the identification and piloting of cutting edge climate finance instruments. It aims to drive billions of dollars of private investment into climate change mitigation and adaptation in developing countries. Analytical and secretariat work of The Lab has been funded by the UK Department of Energy & Climate Change (DECC), the German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB), the U.S. Department of State, the Netherlands Ministry for Foreign Affairs, Bloomberg Philanthropies, and The Rockefeller Foundation. Climate Policy Initiative serves as The Lab Secretariat.