The Inter-American Development Bank (IDB) has approved a $30 million loan for the Emerging Energy Latin America Fund II, designed to boost the private sector as a driving force in clean technologies and renewable energy in the region.

“This financing is part of the IDB’s commitment to develop mechanisms to support long-term funding of renewable energy and clean technology projects in the region, which stimulate innovation, job creation and green economic growth,” said Daniela Carrera-Marquis, head of the Financial Markets Division at the IDB’s Structured and Corproate Finance Department (SCF).

Latin America and the Caribbean are expected to see their energy demand increase by 75 percent by 2030, and renewable energy could account for half of that total demand, according to Andrés Ackermann, the IDB project team leader .

The new fund will invest in renewable energy projects including wind, solar, small hydropower and geothermal, and in energy services companies using clean technologies, including waste-management, biomass, energy efficiency and smart-grid projects. The IDB’s support of the fund fits in with the Bank’s commitment to help mitigate the impact of climate change.

The fund will be managed by Stamford, Connecticut-based Emerging Energy and Environment, LLC (EEE), which specializes in clean and renewable energy, clean technologies, climate change and environment and low-carbon infrastructure investments and advisory services.

The IDB loan is expected to be supplemented by contributions from equity investors to include International Finance Institutions and other local and international capital sources.

The eventual size of the Emerging Energy Latin America Fund II is targeted at approximately $150 million. The Emerging Energy Latin America Fund II is the successor to a previous CleanTech Fund, an earlier stage $25.2 million fund that had a similar focus on renewable energy and clean technology and was supported by the IDB’s Multilateral Investment Fund (MIF).

“We are pleased to partner once again with the IDB Group and work together to provide important resources to reach a common objective of promoting green investments, supporting a more sustainable region,” said John Paul Moscarella, Founder and Senior Managing Director of Emerging Energy Latin America Fund II.

About the Structured and Corproate Finance Department
The IDB’s Structured and Corporate Finance Department (SCF) manages all IDB non-sovereign loan guarantee loan operations for large-scale projects, companies, and financial institutions in Latin America and the Caribbean. Through its syndicated loan program, SCF plays a catalytic role in helping to mobilize third party resources through partnerships with commercial banks, institutional investors, co-guarantors and other co-lenders for projects with high developmental impact.