Citigroup aims $50 billion at climate over 10 years

New York, 10 May: Citigroup plans to direct about $50 billion over 10 years to address global climate change, through investments and financing of renewable energy and clean technologies, it said on Tuesday.

The New York-based financial giant said the figure is based on expected transactions with clients, as well as projects at its own operations. It includes $10 billion that Citigroup has already spent in areas affecting climate change.

The biggest effort will come in Citi's markets and banking group, which plans to invest $31 billion in clean energy and alternative technologies over 10 years. It sees "tremendous opportunities" to support companies working in solar, wind, hydroelectric and geothermal energy, as well as in energy efficiency.

The group has already invested $7.5 billion in this area, Citigroup noted, including a $2.15 billion financing that allowed Portuguese energy firm Energias de Portugal (EdP) to acquire a US wind portfolio. EdP plans to develop 9,000MW of new wind projects.

Another unit, Citi Alternative Investments, has invested in Suzlon Wind Energy, an Indian turbine manufacturer, and Sindicatum Carbon Capital, a London firm developing Joint Implementation and Clean Development Mechanism projects under the Kyoto Protocol.

In commercial finance, CitiCapital's Energy Finance Unit will double its $1 billion portfolio from underwriting energy efficiency investments by universities, school districts and municipalities.

In the consumer area, Citigroup will continue programmes that help homeowners make energy efficiency upgrades or install solar energy systems.

Internally, Citigroup will increase ten-fold, to $10 billion, its commitment to reduce its "corporate environmental footprint". It will purchase more 'green' power for its 14,500 facilities and intends to achieve Leadership in Energy & Environmental Design (LEED) certification for all new construction. It aims to reduce GHG emissions by 10% by 2011, compared with 2005 levels.

Citigroup CEO Charles Prince said the company is well-positioned to address climate change, since it has operations in more than 100 countries.