Columbia is set to receive a $70 million loan from the Climate Investment Funds (CIF) at a low-interest rate to finance its switch from dirty to clean energy, making it the first nation to benefit from the new fund created to support the global adoption of renewable energy.
The funding will be used to build infrastructure that will let communities and companies access renewable electricity. This infrastructure will include batteries to store renewable electricity, transmission lines to carry it around, and green hydrogen production plants.
The funds come from a $300 million fund made up of one-off donations from the governments of Switzerland, the Netherlands, and the United Kingdom.
Read also: Saudi Arabia signs MoU with France on Energy Cooperation
According to an official, “there is an active fundraising campaign underway to draw in more resources from donors and support additional countries”.
The Colombian government anticipates that the $70 million will help to raise $280 million more from carbon financing markets and international development institutions. It estimates that the expenditures will prevent the atmospheric emissions of 1.6 million tons of carbon dioxide, which amounts to about 1% of Colombia’s annual emissions of greenhouse gases.
Three-quarters of Colombia’s electricity comes from hydroelectric dams, a carbon-free source. The rest mainly comes from fossil fuels. The funds will be used by the Colombian government as loans and guarantees for environmental projects.
Story was adapted from Climate Home News.