IFC teams up with Japanese finance firm to fund Asian efficiency projects

The World Bank's investment arm, International Finance Corp (IFC), has signed a memorandum of understanding with Japan-based Mitsubishi UFJ Lease & Finance to provide funding for projects intended to reduce greenhouse gas emissions and pollution in developing Asian nations.

The two institutions said last week that they will jointly finance renewable energy projects, such as solar, wind, hydropower, geothermal or biomass. They will also provide funding for energy-saving initiatives, such as thermal insulation, waste heat recovery and energy-efficient lights at office buildings.

In addition, financing will be available to companies seeking technical upgrades that will minimise pollution levels. These include improvements that enable energy and materials to be used in a manner that minimises waste and emissions.

Details on the amount of available financing and rules for project eligibility were not immediately available.

IFC chief executive Lars Thunell said the new financing partnership with Mitsubishi UFJ Lease & Finance would help developing countries to tap into environmentally friendly production technologies used by Japanese manufacturers and engineering firms.

Mitsubishi UFJ Lease & Finance, which is 20 per cent owned by Tokyo-based conglomerate Mitsubishi Corp, provides loans and equipment leasing services to businesses in Japan and also globally through overseas subsidiaries.

Mitsubishi UFJ Lease & Finance chief executive Naotaka Obata said that " partnering with IFC will help us enter new markets and provide new products to local customers for projects furthering environmental sustainability".