Financing energy projects is a major priority of our strategy. We focus on the full chain from exploration and transportation to generation and distribution, with a strong emphasis on sustainable energy.
Enabling access to energy in low-income countries is at the top
of our strategic agenda.
In 2011, we financed off-grid energy solutions in rural Africa. These smaller-scale projects are vital to building the local infrastructure and enabling basic access. In middle-income countries, we invest in sustainable energy.
In 2011, FMO agreed to participate in the Interact Climate Change
Facility to enhance combined climate action initiatives,
together with Agence Française de Développement,
the European Investment Bank and 11 members of the EDFI.
A FMO biodiversity and climate change network group was initiated last year, with the aim of brainstorming on trends and opportunities. A feasibility study was started and resulted in FMO's first investments in sustainable forestry and biodiversity projects.
Another priority is to strengthen our role as a catalyst financier, motivating other development banks, as well as commercial banks, to commit financing for energy projects. In 2011, we acted as mandated lead arranger (MLA) in a variety of large energy transactions, raising FMO's profile and reaffirming our solid reputation in the sector. To this end, we have been in talks with one of our partner organizations, the Belgian Investment Company for Developing Countries (BIO), with whom we will continue to partner in financing infrastructure and sustainable energy projects in 2012. With the initial €45 million utilized, BIO decided to commit an additional amount of €60 million to this cooperation.
In 2011, FMO successfully completed two feasibility studies into climate change mitigation initiatives. One resulted in our participation in Reduced Emissions from Deforestation and Degradation (REDD) certificates - the first commercial funds of their kind in the market. We also conducted research into setting up a private sector Feed in Tariff fund (FIT) in Indonesia, which will continue in 2012.
In 2011, we committed €353 million in new financing to energy projects, which saw our overall committed renewable energy portfolio increase to €563 million. In 2011, 65% of the new loan commitments in the energy sector concerned renewable energy investments. This means that in early 2012, we already surpassed our goal for end-2012 of committing €400 million to renewable energy financing. Our financing of renewable energy continues to surge from €100 million in 2008.