President Obama Announces $300 Million Clean Energy Investment Fund for South Asia
November 8, 2010
MUMBAI, India – President Barack Obama announced today that the Overseas Private Investment Corporation (OPIC) would provide up to $100 million of a $300 million clean energy investment fund designed to deepen U.S.-India cooperation and further the development of low-carbon economies throughout the South Asia region.
Establishment of the South Asia Clean Energy Fund, which is managed by the Global Environment Fund (GEF), is among the commitments announced by President Obama and Indian Prime Minister Manmohan Singh today to address climate change, ensure mutual energy security, and build a clean energy economy that will drive investment, job creation, and economic growth throughout the 21st century. OPIC President and CEO Elizabeth Littlefield is accompanying President Obama on his three-day trip to India.
OPIC will provide up to $100 million in financing for the $300 million fund, which supports the US-India Partnership to Advance Clean Energy (PACE). The GEF fund, which will invest in solar, wind, hydropower, advanced biofuels and natural gas projects, will predominantly focus on investments in India.
In addition to the broader fund, GEF is announcing the formation of an India-specific sub-fund in conjunction with the Indian Infrastructure Development Finance Company (IDFC) and other potential Indian investors targeting India-only investment.
The South Asia fund and the India sub-fund augment OPIC’s growing pipeline of nearly $300 million in other clean energy and energy efficiency projects in India.
“President Obama last year challenged the United States to take bold action to increase American investment in renewable energy and clean technology, both at home and abroad,” Ms. Littlefield said. “This OPIC-supported investment fund is a significant down payment on the President’s challenge.
Ms. Littlefield noted that announcement of the fund was the latest development in the ongoing OPIC effort to facilitate U.S. private sector investment in both India and renewable energy. In May, more than 260 participants from 26 countries attended an OPIC renewable energy investment conference in New Delhi, designed to facilitate U.S. private sector investment in clean technology. Over the course of its 40-year history, OPIC has provided nearly $2 billion in financing and political risk insurance to 115 projects in India.