Stockholm (NordSIP) – Swedish state development financier Swedfund has invested SEK 128 million in the Climate Investor One fund, a fund which develops, builds and employs renewable energy projects in developing countries, as part of its energy investment portfolio, it emerged Monday (June 25th).
Climate Investor One invests in renewable energy from solar, wind and hydropower in developing countries. The fund aims to increase the capacity of renewable energy by more than 1000 MW and contribute to the creation of over 10,000 jobs. The fund expects to contribute to the provision of cost-effective renewable electricity to seven million people. Climate Investor One aims to reduce CO2 emissions by 1.8 million tonnes annually, which corresponds to emissions from roughly 350,000 passenger cars.
“Access to energy is a prerequisite for poverty reduction, and investment in the energy sector is therefore one of Swedfund’s priority areas,” said Swedfund CEO Maria Håkansson. “Climate Investor One is an interesting example of how private investor financing can go to developing countries, which is critical if we are to reach the UN Global Sustainability Goals.”
The lack of reliable and sustainable energy is one of the biggest challenges facing developing countries, impeding economic development and affecting the weakest groups in society the hardest. Individuals and companies are instead forced to produce alternative electricity, which is in many cases produced by diesel-powered generators or wood burning, which are both expensive and environmentally hazardous.
Close to one billion people still live without access to electricity. The availability of cost-effective, reliable and sustainable energy is one of the UN SDGs. Technical conditions for energy supply through renewable sources are often very good, but many energy projects are stalled due to lack of knowledge and funding.
The Climate Investor One fund also includes Dutch development finance company FMO alongside Scandinavian and Dutch institutional investors.
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