Project profile — Canadian Climate Fund for the Private Sector in the Americas



Overview 

CA-3-M013705001
$250,000,000
IDB - Inter-American Development Bank (46012)
2012-03-30 - 2037-03-31
Operational
Global Affairs Canada
MFM Global Issues & Dev.Branch

Country / region 

• West Indies, regional (20.00%)
• North and Central America, regional (32.00%)
• South America, regional (48.00%)

Sector 

• Water And Sanitation: Water resources conservation (including data collection) (14015) (10.00%)
• Energy generation, renewable sources - multiple technologies:
Energy generation, renewable sources - multiple technologies (23210) (10.00%)
Solar energy (23230) (10.00%)
Wind energy (23240) (10.00%)
Geothermal energy (23260) (10.00%)
Biofuel-fired power plants (23270) (10.00%)
• Biosphere protection:
Biosphere protection (41020) (20.00%)
Bio-diversity (41030) (10.00%)
Flood prevention/control (41050) (10.00%)

Policy marker 

• Gender equality (significant objective)
• Environmental sustainability (cross-cutting) (principal objective)
• Participatory development and good governance (not targeted)
• Trade development (not targeted)
• Biodiversity (not targeted)
• Climate change mitigation (principal objective)
• Climate Change Adaptation (principal objective)
• Urban issues (not targeted)
• Desertification (not targeted)
• Children's issues (not targeted)
• Youth Issues (not targeted)
• Disaster Risk Reduction(DRR) (not targeted)
• Disability (not targeted)
• Indigenous Issues (not targeted)
• Nutrition (not targeted)
• ICT as a tool for development (not targeted)

Description 

This initiative aims to support projects across Latin America and the Caribbean that are focused on renewable energy, energy efficiency, reducing greenhouse gas emissions, and that help countries to adapt to the adverse impacts of climate change. The Canadian Climate Fund for the Private Sector in the Americas (the Fund) aims to play a key role in overcoming leading edge technology risks and cost hurdles in order to spark and scale-up projects to reduce emissions and adapt to climate change. Clean energy is a key focus of the Fund, and projects supported by the Fund may include wind, solar, geothermal and hydro projects. In addition, the Fund may also support agriculture, forestry and adaptation measures such as reforestation, soil sequestration and climate resilient infrastructure. The Fund, managed by the Inter-American Development Bank (IDB), catalyzes private sector climate mitigation and adaptation projects that require loans with concessionary terms to be viable. The Fund may provide up to half of its financing in repayable contributions offered in the local currency, rather than US dollars, to encourage local companies to invest by protecting them from unexpected borrowing costs that might result from fluctuations in the US dollar. The IDB, the Inter-American Investment Corporation and/or the Multilateral Investment Fund co-finance Fund projects. Canada's contribution to the Fund is expected to leverage up to US $5 billion in private sector investment and help to reduce greenhouse gas emissions by up to 50 million tonnes over the Fund's 25-year life.

Expected results 

The expected intermediate outcomes for this project include: reduction in the growth of greenhouse gas emissions and/or enhanced carbon sequestration due to sinks, avoided deforestation, or adjusted agricultural practices; and reduced vulnerability to the adverse effects of climate change.

Results achieved 

Results achieved as of October 2014 include: approval of five mitigation projects in Chile, Peru, and Uruguay as well as one regional supply chain facility supporting adaptation in agriculture project; and, USD 689.8 million of expected leveraged financing. Projects already under way include: a higher education project at the Universidad San Ignacio de Loyola in Peru; and a solar power plant in Pozo Almonte, Chile. In Peru, the project at the Universidad San Ignacio de Loyola has led to the construction of the first Leadership in Energy and Environmental Design (LEED) design certified building in higher education; an estimated reduction of 600,00 tons of CO2 per year; 35% projected water savings; 12% to 20% projected energy savings across all buildings; and USD 77.20 million of direct finance leveraged. In Chile, construction of the photovoltaic plants is 100% complete and the grid was connected in March 2014. Since it has been in operation the Pozo Almonte’s solar power plant has achieved reduction of 8,118 tons of CO2; the production of 10,000 megawatts hour of renewable energy; and USD 63.6 million of direct finance leveraged.

Budget and spending 


Original budget $0
Planned disbursement $0
Transactions
Country percentages by sector
Type of finance Reimbursable grant
Collaboration type Bilateral
Type of aid Contributions to specific-purpose programmes and funds managed by implementing partners
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