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The Canadian Climate Change Fund at the World Bank’s International Finance Corporation
Canada is contributing $1.2 billion in climate change financing from 2010-2013. Of that, Canada has provided $291.5 million for the new Canadian Climate Change Fund at the International Finance Corporation (IFC), a World Bank member.
This so-called “fast-start” financing stems from Canada’s commitment to do its fair share to help developing countries be part of the global solution to this global issue. It will encourage innovation and leverage private investment to reduce greenhouse gas emissions in developing countries.
Since the Canadian Climate Change Fund became operational in June 2011, $33 million has been delivered to five projects in Africa and Latin America. These initial projects will help reduce greenhouse gas emissions by more than 700,000 tonnes per year. The following two projects provide an example of the type of work being done:
Wind Power in Lesotho
IFC-Canada Climate Change Fund will help the Government of Lesotho develop two wind energy projects, with a private operator to develop, finance and operate the projects at a later stage.
In phase 1 of the project, IFC will assess the topography, transport, logistics and grid access of two identified sites, and present findings to the Government along with recommendations for project implementation. In phase 2 of the project, the team will install wind-measurement equipment in both sites to assess their generation potential and their potential to attract private sector investment.
Lesotho is one of the poorest African countries; an estimated 40% of the population lives in poverty. There is potential for large-scale wind projects, and by facilitating private sector investment in this sector, these projects could improve Lesotho’s energy generation capacity for its own use as well as for sale to its neighbors.
Restructuring the Power and Water Utility in Guinea-Bissau
The Canada Climate Change Fund at IFC will support the Government of Guinea-Bissau with the restructuring of Eletricidade e Aguas de Guinea-Bissau (EAGB), the state owned power and water utility. The main objective of this project is to help the Government of Guinea-Bissau attract private sector know-how for its electricity and water distribution network. It is also to provide an incentive for other governments in the region to reduce energy losses by demonstrating the role of the private sector in improving distribution systems.
The World Bank has identified the poor state of the power and water sectors in Guinea-Bissau as a key hindrance to economic growth for the country. Infrastructure improvements are imperative in order to increase the availability and reliability of electricity and water supply. On the electricity side, widespread power cuts and poor commercial management have led high levels of energy losses and low revenue collection.
Based on similar experiences in the region, the project is expected to deliver, among other positive outcomes, up to 50% reduction in energy losses from the transmission network managed by EAGB over a five year period.
For more on Canada’s Climate Change activities, please visit: www.ec.gc.ca .
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