Finnfund’s climate investments 2019-2021
Finnfund is committed to investing in businesses which mitigate climate change and help people in developing countries adapt to it. These climate investments will be made in 2019-2021.
The amount is one half of the 210 million euro loan issued to Finnfund by the Finnish Government in 2019. We will invest the other half in projects which advance gender equality.
In its climate change investments, Finnfund applies the OECD DAC Rio Markers for Climate.
In addition, Finnfund calculates the climate impact of its entire investment portfolio annually. The comprehensive calculation of the investment portfolio provides an opportunity to analyse and develop the portfolio based on measurable and annually monitored quantitative data.
105 million euros by the end of 2021
Commitments as of December 2021 (starting April 2019)
Climate investments 2019-2021
According to the Intergovernmental Panel on Climate Change (IPCC), limiting warming to 1.5°C requires a marked shift in investment patterns. Additional annual energy-related investments alone are estimated to be around USD 800 billion. On top of that, developing countries will need to make sizeable investments in adaptation.
Development financiers play an important role in mobilising and channelling funding to climate investments.
Investment agreements
Signed agreements since 2019, as on October 2021.
| Investment | Country | Sector | Financing | Year | |
|---|---|---|---|---|---|
| IPT Powertech | International | Telecommunication | USD | 10,000,000 | 2019 |
| MLR Forestal de Nicaragua | Nicaragua | Forestry and agriculture | USD | 10,000,000 | 2019 |
| ETC Group (Mauritius) | Africa | Agriculture | USD | 15,000,000 | 2020 |
| Green Resources AS V | Africa | Forestry | NOK | 270,387 | 2020 |
| Interact Climate Change Facility | International | Financial services | EUR | 15,000,000 | 2020 |
| New Forests Company Holdings | Africa | Forestry | USD | 180,552 | 2020 |
| Kashf Foundation | Pakistan | Microfinance | USD | 10,000,000 | 2020 |
| e-Mobility | India | Charging service | EUR | 4,000,000 | 2020 |
| Salo Tech Thailand Ltd. | Thailand | Solar power | EUR | 2,756,250 | 2020 |
| CIFI Latam S.A. | Latin America LMIC | Banks and finance | USD | 15,000,000 | 2021 |
| Starsight | Africa | Off-grid power generation | USD | 7,100,000 | 2020 |
| ETC Group (Mauritius) | Africa | Agriculture | USD | 10,000,000 | 2021 |
| Nordic Impact Cooperation AS | International | Energy | EUR | 7,400,000 | 2021 |
| Kilombero Valley Teak Company | Tanzania | Forestry | USD | 345,000 | 2021 |
| Forest First Colombia | Colombia | Forestry | USD | 1,500,000 | 2021 |
Examples of investments in climate
More reliable and energy efficient telecommunications in Lebanon and Guinea
IPT PowerTech Group will modernize the energy supply infrastructure in Lebanon and Guinea. The hybrid solution utilizing solar panels and storage media will save up to 40% of energy and reduce diesel consumption significantly. The annual CO2 emission reductions have been calculated at 115,000 tons per year.
Sustainable teak and cocoa plantation in Nicaragua scores top impact points
A project to expand FSC certified teak and UTZ certified cocoa plantations in Nicaragua scores exceptionally high points in Finnfund’s development impact assessment. The high score is based on the project’s contribution to carbon capture, protection of fauna and curbing deforestation as well as the various social impacts
Energy efficient solar power solutions in Nigeria’s banking sector
Starsight offers solar-diesel-battery hybrid generation and efficient cooling and lighting solutions to commercial and industrial clients throughout Nigeria. Starsight’s solution will cut the customer’s use of fossil fuels by up to 70%.