Germany's largest bank signs an agreement on investment with a fund created by a raft of nations to tackle climate change.
Deutsche Bank agreed with the South Korea-headquartered Green Climate Fund for to receive and use GCF capital and raise further funds from private sector investors to support action on climate change.
The Green Climate Fund works through a wide range of “accredited entities to” channel its resources to projects and programmes. Deutsche Bank is the second commercial bank to sign such a pact with with GCF, it said.
The agreement has been signed in London by Nicolas Moreau, head of Deutsche Asset Management and member of the bank’s management board, and executive director of the GCF’s Secretariat, Howard Bamsey.
The fund approved the first funding proposal from Deutsche Bank in October last year. The Universal Green Energy Access Programme combines capital from the GCF with private sector investment to finance renewable electricity access for nearly half a million people and small and medium sized enterprises in cooperation with local banks in Africa.
The GCF has “anchor investment” of $78.4 million.
Created by the United Nations Framework Convention on Climate Change, the fund sets out to bring about a change in how climate change is tackled, directing money low-emission and climate-resilient projects and programmes in developing countries. The fund was set up in 2010 by 194 countries.