AFP, Washington :
The World Bank's private financing arm on Friday launched a joint venture with Europe's largest asset manager, Amundi, to create a $2 billion green bond fund to unlock financing for environmental projects in developing countries.
In the wake of the Paris climate deal there is greater interest in finding new ways to direct financing towards environmental projects, such as renewable energy, Amundi's deputy head of institutional clients Frederic Samama said.
"People have realized we will only tackle climate change if we are able to mobilize the civil society as well. It's no longer just in the hands of policymakers," he told AFP, adding that the goal of the fund is to mobilize financial markets.
He said Amundi already has tested the waters with large institutional investors, including pension funds in Sweden, France and Germany, and a sovereign wealth fund in New Zealand, and "received very good feedback."
The World Bank's International Finance Corporation will invest up to $325 million in the new Green Cornerstone Bond Fund, which will buy green bonds issued by banks in Africa, Asia, the Middle East, Latin America, Eastern Europe and Central Asia, according to a statement.