BRUSSELS, Oct 6: The European Commission on Friday proposed creating a 100-million-euro global risk capital fund to boost private investment in renewable energy in poorer nations.

“This is an innovative mechanism. It underlines the Commission's commitment to help developing countries invest in renewable energy and energy efficiency,” said EU Environment Commissioner Stavros Dimas.

“It will contribute to bringing clean, secure and affordable energy supplies to 1.6 billion people around the world, who have no access to electricity.”

One of EU’s goals is to prevent the global temperature from rising more than two degrees centigrade above pre-industrial levels.

“While the main responsibility for triggering these changes lies with the industrialised countries, scaling up energy efficiency and renewable energy initiatives will greatly benefit developing countries by providing clean and secure energy supplies to people who currently have no access to reliable energy sources,” Dimas said.

The Commission has appointed international fund managers Triodos to set up the Global Energy Efficiency and Renewable Energy Fund in conjunction with the European Investment Bank, the European Bank for Reconstruction and Development and “other interested parties”.

The Commission intends to put 80 million euros into the fund from 2007 to 2010. Total initial funding from public and commercial sources of 100 million euros is anticipated.—AFP