Success of Deutsche Bank's "Global Climate Partnership Fund": climate protection projects can also be financially attractive
Deutsche Bank Co-Chairman Jürgen Fitschen supports the success of the Global Climate Partnership Fund.
Deutsche Bank serves as the investment manager for the Global Climate Partnership Fund which was created by the German Ministry of the Environment and KfW. The fund focuses on delivering financing for projects in the area of energy efficiency and renewable energy in emerging and developing countries. The fund can make a broad spectrum of investments including placing capital in local financial institutions, direct investments in renewable energy production and energy savings.
At an event celebrating the fund’s 2nd year of operations, Jürgen Fitschen, Co-Chairman of the Management Board and the Group Executive Committee, said: ”We are pleased to be able to provide an effective contribution to combating climate change, together with other investors, through the Global Climate Partnership Fund. This fund shows that climate protection projects can also be financially attractive."
The event announced the first private sector investment into the fund with the German doctors’ pension fund Ärzteversorgung Westfalen-Lippe investing $ 30 million. In total, the fund has commitments of $ 234 million from investors. Over the last year, the fund nearly doubled its investments by placing US$ 153m with 8 local financial institutions. Also speaking at the event were two of the fund’s local partners: the Vietnam Joint Stock Commercial Bank for Industry and Trade and Mongolia’s XAC Bank.
In total, investments led to energy savings of nearly 240,000 megawatt hours creating a 49% carbon emission reduction against a "business as usual" scenario. One example of the type of project is the financing of a 1 MW solar PV plant in South Africa at a chrome mining and processing facility. The project does not rely on any financial support by the public sector in the form of feed-in tariffs or subsidies. Instead, its rational is based on the rising price for energy and the need for a reliable and independent energy supply.
Dr Norbert Kloppenburg, member of the Executive Board of the KfW Banking Group, said: "We are exceptionally pleased about the investment by Ärzteversorgung Westfalen-Lippe. Firstly, because environmental and climate financing is one of the KfW's main areas of focus, and secondly because the bank always aims to achieve private-sector involvement with a view to facilitating economically sustainable growth in partner countries. The positive resonance generated by the Global Climate Partnership Fund confirms we have the right strategy."
Ursula Heinen-Esser, Parliamentary State Secretary in the German Federal Ministry of the Environment, said: "The Global Climate Partnership Fund is an outstanding project within our international climate initiative. With our initial investment, we wanted to mobilise additional funds for "green" investments in developing countries and emerging markets. The commitment by Ärzteversorgung Westfalen-Lippe shows that this is working. We look forward to seeing the fund continue to flourish in the future."
For the recently published 2012 Global Climate Partnership Fund’s annual report click here http://gcpf.lu/id-2012.html
“This fund shows that climate protection projects can also be financially attractive.”
240,000 megawatt hours
of energy savings creating a 49% carbon emission reduction
“The Global Climate Partnership Fund is an outstanding project within our international climate initiative.”