Finland increases climate finance to Africa

Finland will allocate EUR 15 million to the new Energy and Environment Partnership Trust Fund (EEP Trust Fund) in Southern and East Africa for the period 2018 to 2022.

The EEP Trust Fund, which will be launched in January, is managed by the Nordic Development Fund (NDF) in Helsinki, said an official press release.

“Boosting energy production is vital for development in Africa. Making this happen without emissions is a critical question from the point of view of climate change as a whole. Our contribution to the programme tackles the heart of the challenge,” said Minister for Foreign Trade and Development Kai Mykkänen.

The Trust Fund, which will focus on renewable energy and energy efficiency, is a follow-on to the Environment and Energy Partnership Programme (EEP Programme), developed by Finland.

From 2010 to 2017, Finland supported the Programme with EUR 21.5 million. By transferring the finance of the EEP Programme to the trust fund model, the Foreign Ministry will be able to better meet the need of more diversified financing mechanisms, that is, to move from grants to loans and guarantees.

Finland, the NDF and Austria have preliminarily pledged to provide EUR 28 million to the Trust Fund. The Trust Fund covers 15 Southern and East African countries, of which eight belong to the category of least developed countries (LDC).

To date, over 800,000 households have gained access to renewable energy through the EEP Programme. In addition, the Programme has created more than 6,400 jobs, of which 2,500 for women. Greenhouse gas emissions have been reduced by approximately 350,000 tons.

The Programme has provided seed funding for innovative businesses and institutions at the initial phase of their operation. Thanks to the funding, these businesses have been able to make their activities commercially sustainable. Projects that have received funding have improved people's access to and security of energy, as well as mitigated climate change.

The new Trust Fund supports the achievement of the UN SDGs. The Trust Fund will be used to support poverty reduction, gender equality, access to affordable and clean energy, decent work and economic growth, as well as climate actions.

The EEP Trust Fund is part of the climate funding reported by Finland. Finland's share of the EEP Trust Fund will be among the most important initiatives in the fight against climate change, funded from development cooperation appropriations.