DFC Announces Nearly $4 Billion in New Climate Finance Commitments at COP29

BAKU, AZERBAIJAN - The U.S. International Development Finance Corporation committed more than $3.7 billion in new climate finance investments in Fiscal Year 2024 that are driving the U.S. Government's investments in energy security, supply chain diversification, food and water security, and strengthening the resiliency of communities and countries around the world.

Over the past four years, DFC's annual climate finance commitments have grown from less than $500 million to nearly $4 billion. These new commitments serve as an integral part of DFC's efforts to strengthen U.S. foreign policy and developmental objectives. They build on existing efforts to scale, diversify, and mobilize private capital to help communities around the world address climate challenges.

"DFC recognizes the enormous challenge climate change poses to communities across the globe, one that can set back global developmental and foreign policy objectives," said DFC Chief Climate Officer (CCO) Anna Shpitsberg. "We are continuing to meet partner and private sector demand by growing our financing year after year to address pressing challenges and the need to adapt. We are also helping communities capitalize on a once-in-a-generation opportunity to attract investment in energy diversification and climate solutions across nearly every sector of the economy."

DFC CCO Shpitsberg, Deputy CCO Aparna Shrivastava, and several other DFC officials traveled to Baku, Azerbaijan, to attend the conference.

New DFC commitments highlighted at COP29 include:

Bolstering food and water security. DFC's climate investments are helping the world's most vulnerable communities adapt to a changing climate by strengthening food and water security.

• In El Salvador, political risk insurance for a $1 billion debt conversion will provide long-term funding for conservation and water security in the Rio Lempa watershed.
• In Kenya, a $20 million DFC loan will help Victory Farms expand sustainable tilapia production in Lake Victoria to increase access to an affordable source of protein.
• In India, a $16.5 million loan guaranty to Ecozen Solutions Private Ltd. will support the promotion of climate-smart technology such as smart, solar-powered irrigation pumps and off-grid distributed cold storage solutions for farmers to improve production, reduce food loss, and decrease emissions.

Advancing energy security. DFC is bolstering financing for energy investments that improve access to energy and reduce reliance on fuel imports to strengthen energy security, increase diversification, bolster economic growth, create jobs, and deliver reliable public services.

• In Indonesia, a $126 million DFC loan to PT Medco Cahaya Geothermal will finance the development of 31.4MW of geothermal power generation capacity in East Java.
• In Mozambique, a loan of up to $99 million to Central Eléctrica da Namaacha, along with $80 million in political risk insurance to Globeleq Africa Limited, will support the development of a 120MW wind power project in Mozambique, the country's first utility-scale wind power project.
• In Türkiye, DFC's largest wind energy investment, a $350 million loan to Enerjisa Enerji Üretim A.Ş. will finance new onshore wind projects that are expected to generate approximately 2.51 terawatt-hours (TWh) per year, or approximately 280,000 homes a year.

Strengthening global energy supply chains. DFC's investments are driving diversification of global supply chains.

• In Angola, a $553 million loan to the Lobito Atlantic Railway will support the upgrade and rehabilitation of a mineral port and more than 800 miles of rail to help ensure the efficient, reliable, and lower-emission transport of minerals that are critical to the clean energy transition.
• DFC also committed a $3.4 million technical assistance grant to Pensana to conduct feasibility studies to advance development of a rare earth mine and refining facility in Angola along the Lobito Corridor.
• In Mexico, a $25 million equity investment in Beel Sustainable Credit II will help provide financing for infrastructure projects across Mexico and contribute to the country's energy transition and the region's supply chain resiliency.

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The U.S. International Development Finance Corporation (DFC) partners with the private sector to finance solutions to the most critical challenges facing the developing world today. We invest across sectors including energy, healthcare, infrastructure, agriculture, and small business and financial services. DFC investments adhere to high standards and respect the environment, human rights, and worker rights.