A group of philanthropic foundations and international development banks on Wednesday announced a $ 10.5 billion fund to help emerging economies with growing energy needs switch from fossil fuels to renewable sources.

The group, known as the Global Energy Alliance, aims to attract more donors in the coming weeks. Currently, it has withdrawn $ 1.5 billion from the Rockefeller Foundation, the Ikea Foundation and the Bezos Earth Fund, as well as $ 9 billion from international development banks such as the African Development Bank and the International finance corporation.

The announcement, on the sidelines of the United Nations climate summit in Glasgow, comes as the Biden administration is banking on billions of dollars in private investment to move the world’s energy systems away from coal, oil and gas.

Raj Shah, chairman of the Rockefeller Foundation, which helped set up the alliance, said the new fund was needed to jumpstart investment in clean energy technology that would not otherwise attract private investors who demand high rates of return.

“Accelerating climate transitions in developing countries will not happen if an immediate 20% return on every investment is needed,” Shah said, adding that such a move would require the public, philanthropic and private companies come together to “take advantage of innovative financing”.

The alliance says it aims to raise $ 100 billion in public and private capital to expand access to clean sources of electricity to one billion people in developing countries, create 150 million jobs and avoid the carbon emissions that would have been generated by coal-fired power plants.

The money will support initiatives such as the development of mini-grids in parts of rural India, help Indonesia shut down some of its oldest and most polluting coal-fired power plants, and develop a hydroelectric project in Sierra. Leone.

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