Yellen to announce first $1 billion Treasury loan for multilateral Clean Technology Fund




  • In US
  • 2022-10-06 11:07:54Z
  • By Reuters

By Andrea Shalal

WASHINGTON (Reuters) - U.S. Treasury Secretary Janet Yellen on Thursday will announce a $950 million loan to the Clean Technology Fund (CTF), a multilateral trust fund that helps developing countries accelerate their transition from coal power to clean energy.

The contribution, the first of its kind from the U.S. Treasury, makes good on a U.S. pledge made at the 2021 Group of Seven summit alongside other G7 countries, Treasury said.

Treasury Assistant Secretary for International Trade Alexia Latortue called the loan a "strong down payment" on President Joe Biden's pledge to spend $11 billion on climate finance, and said it reflected continued U.S. support for emerging market countries as they transitioned away from fossil fuels.

The loan will be used to support U.S. climate commitments, including Just Energy Transition Partnerships (JETPs), while funding CTF projects developed by multilateral development banks in alignment with South Africa, Indonesia, India, and the Philippines as they accelerate their shift away from coal.

The U.S. money could fund installation of new renewable energy equipment, retirement of older coal plants and various support programs that promote new investment and employment in communities affected by energy transition, Treasury said.

Yellen will announce the loan in a speech at the Center for Global Development, ahead of next week's annual meetings of the World Bank and International Monetary Fund.

South Africa, India, Indonesia and the Philippines last year became the first recipients of the Accelerating Coal Transition (ACT) program developed by the CTF.

The four countries account for 15% of global emissions related to coal, the dirtiest fossil fuel. Cutting their emissions more quickly will help the global effort for net zero carbon emissions by 2050.

The CTF is one of two multi-donor trust funds set up under the Climate Investment Funds (CIF), an initiative created by the world's biggest economies in 2008 to help poorer countries shift more quickly to a low-carbon economy.

"With this new contribution, the United States is helping create new jobs, new sustainable markets while reducing emissions, and by doing so, securing our shared climate future," CIF CEO Mafalda Duarte said in a statement.

(Reporting by Andrea Shalal; Editing by Kim Coghill)

COMMENTS

More Related News

IMF
IMF's Georgieva flags inflation, China slowdown as risks to Asia

International Monetary Fund Managing Director Kristalina Georgieva flagged rising inflationary pressures and China's economic slowdown as risks to Asia's...

US Congress approves bill to avert major freight rail strike
US Congress approves bill to avert major freight rail strike

The US Congress passed legislation Thursday to avert a freight rail strike that could have been devastating for the economy, intervening to break an impasse ...

France
France's Emmanuel Macron joins the Bidens for a White House state dinner

US President Joe Biden is hosting his French counterpart for a lavish state dinner at the White House.

Clyburn elected House Dems
Clyburn elected House Dems' assistant leader, averts contest

Wrapping up leadership elections, House Democrats unanimously chose Rep. James Clyburn of South Carolina for a new role Thursday, as the party whip...

Stanlow oil refinery to build £360m carbon capture plant
Stanlow oil refinery to build £360m carbon capture plant

The plant will be built at Stanlow refinery in Ellesmere Port with the aim of reducing carbon emissions.

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

  • yeezy gap fake
    (2022-10-07 09:04:40Z)

    With the Yeezy collaboration, Gap is tapping into a huge and loyal fan base. One fan told The Fader in 2016 that he had amassed enough Kanye apparel over the years to dress himself every day, while another started a “digital museum” to document the history of the rapper’s merchandise.

    REPLY

Top News: US