The Earth Fund was launched in Bali, Indonesia on Monday to
facilitate market-based environmental innovation in developing
countries.
The fund was launched by the Global Environmental Facility (GEF)
and International Finance Corporation (IFC), the private sector arm
of the World Bank Group, during an ongoing U.N. climate change
conference in Bali, a resort island of Indonesia.
The fund will be open to the private sector, foundations and
other partners, that will support innovative and market-based
solutions for the most pressing environmental challenges in
developing countries, a press release of GEF and IFC said.
The GEF and the IFC will designate 50 million U.S. dollars and
10 million dollars, respectively, to the fund, which has already
attracted several partners and is expected to grow to 200 million
dollars through additional contributions from private sector
companies, foundations, NGOs and other development agencies.
"A key goal for us at the GEF is to support innovative solutions
to environmental challenges in developing countries. 50 million
dollars have been set aside towards the Earth Fund because I am
committed to the proposition that the private and the public
sectors together can play an irreplaceable role in addressing the
underlying causes of environmental degradation," said Monique
Barbut, GEF CEO and Chairperson.
In order to maximize its impact, the fund will use a wide array
of financial instruments, including grants, soft loans, equity
participation, as well as inducement prizes that reward
environmental innovation in areas such as second generation
biofuels, water treatment or clean energies.
"We hope the Earth Fund, in particular the use of prizes, will
encourage innovation, venture capital and early stage investment in
new products yet to be commercially developed," said Rachel Kyte,
IFC Director for Environment and Social Development.
"The global environmental challenges of our time require rapid
intensification of our efforts to both mobilize private investment
in the search for solutions as well as to secure new partnerships
to bring this investment into developing countries," he said.
The two-week U.N. climate conference, which kicked off on Dec. 3
and will end on Dec. 14 is tasked with drawing up a "roadmap" for
negotiations on a new climate deal before the current phase of the
1997 Kyoto Protocol expires in 2012.
The GEF is a 178 member-strong international financing body
devoted to the protection of the global environment in developing
countries.
IFC is a member of the World Bank Group, fosters sustainable
economic growth in developing countries by financing private sector
investment, mobilizing private capital in local and international
financial markets, and providing advisory and risk mitigation
services to businesses and governments.
(Xinhua News Agency December 11, 2007)
