The problem of climate change has become an important element of the development strategy for many companies. This is facilitated by the joint efforts to create proactive processes and funds at the local, national and international levels.
Governments around the world tend to take active action to coordinate their steps and evaluate the results achieved in the fight against climate change. The path to the change and prevention of the existing negative trends will require joint action for several decades. The use of renewable energy sources (RES) is a significant component of this path.
In addition to national measures promoting RES (grants, tax exemptions, more favorable tariffs, etc.), international support is formed for maximum efficiency of the efforts. An integrated approach combining financial and advisory instruments is created.
At the Paris UN conference on Climate COP 21 (held in December 2015) dedicated to climate change, a number of important initiatives have been announced that will become real steps in increasing the pace of renewable energy development.
The Global Mechanism of the United Nations Convention to Combat Desertification (which is a mechanism for mobilization and allocation of funds) and MIROVA (the management investment company of NATIXIS bank) have announced a partnership and committed themselves to establish LDN Fund (Land Degradation Neutrality Fund intends to actively contribute to the prevention of land degradation).
You can read more about this on the website global-mechanism.org or in the official press release.
One of the main aims of the Fund is the mitigation of climate change by reducing CO2 emissions by 20% by the year 2050.
“Land Degradation Neutrality” Fund intends to finance economically viable projects developed on the basis of successful pilot projects that have the potential for expansion. It is being planned to build a financial and technical support for such projects with the help of public-private partnership.
Financing is aimed at the spheres of sustainable development in many directions (infrastructure, eco-tourism, agriculture, forestry), including RES.
The stage of fundraising begins in 2016. It is expected that “Land Degradation Neutrality” Fund will enter the active phase in the second half of 2016.
The Fund will provide a structured portfolio, in which private and public entities can participate to achieve the announced goals.
International associations, including the European Investment Bank and Multilateral Investment Guarantee Agency, World Bank Group, support the establishment of the fund and intend to accompany the stage of its structuring.
Current financial sources of the Fund are the following:
- Global Environment Facility (GEF);
- European Commission (the executive body of the EU);
- Royal Danish Ministry of Foreign Affairs;
- Ministry for Foreign Affairs of Finland;
- Ministry for Foreign Affairs of Italy;
- Ministry for Foreign Affairs of Norway;
- Federal Ministry for Economic Cooperation and Development of Germany (BMZ);
- MIROVA (the management investment company of NATIXIS bank);
- American charitable foundation. Rockefeller Foundation.
Information for the experts.
It is important to note that the technical and financial resources of the established fund are also available for the Republic of Belarus.