Interact Climate Change Facility (ICCF)

The Interact Climate Change Facility (ICCF) is a joint investment facility for financing climate change and climate efficiency projects in developing countries. It is backed by the majority of the European Development Finance Institutions (EDFIs), to which SIFEM belongs. ICCF provides long-term loans, guarantees and mezzanine finance of up to EUR 45m to private sector projects that reduce climate change by cutting greenhouse gas emissions. SIFEM initially committed EUR 5m to ICCF in February 2011 and further EUR 5m in the facility’s top-up in May 2013. In October 2014, SIFEM made an additional commitment of EUR 7.5m to ICCF and thereby also increased its pro-rata share in future underlying ICCF projects. For the third top-up SIFEM committed EUR 8m as of November 2016.

ICCF backs projects promoted by individual EDFIs, financing up to 75% of the total investment need. It builds on the successful track record of co-operation and co-investment between EDFIs in African, Carribean and Pacific countries, as well as in numerous individual projects. It allows SIFEM and its European sister institutions faster and more reliable access to co-investments, thus enabling them to close deals more efficiently and to expand the scarce supply of long-term finance for climate change projects in developing countries.

Projects financed by ICCF include businesses building renewable energy plants, clean energy distribution infrastructure, energy efficiency technology or transport projects that cut emissions from road and air travel. ICCF promotes the use of clean technology as an integral part of sustainable economic development. It also acts directly in the poorest countries, which are most exposed to the harmful effects of climate change and where the energy shortage is greatest.