The Global Innovation Lab for Climate Finance hosted a virtual Demo Day on 20 October to present its 2021 groundbreaking climate finance ideas to the world. Each year, Lab ideas represent the latest and greatest in sustainable investment, and this year is no exception with over USD 300 million in philanthropic, concessional, and commercial investment opportunities in high impact areas ranging from building sustainable agroforestry supply chains in the Amazon to rapidly expanding the portfolio of sustainable urban infrastructure in Africa.
Watch the recording to learn more about these catalytic investment solutions that support sustainable development goals in emerging markets.
The full list of ideas is:
The ARM-Harith Cities & Climate Transition Fund (The ACT Fund) expands the pipeline of sustainable infrastructure projects in West Africa through a unique blended-currency mechanism that reduces financing friction at early project stages while providing structured exit solutions that mobilize local institutional investment.
Investment ask: ARM Harith currently has more than 10 projects in the pipeline in which the ACT fund could invest and seeks USD 10 million for project preparation, technical assistance and design stage grant. The ACT Fund will target USD 250 million-equity and local currency subordinated debt to support an initial pipeline of urban renewable energy and potentially transport projects in Nigeria and Ghana
The Amazônia Sustainable Supply Chains Mechanism leverages off-take agreements for forest-compatible products to provide upfront finance, technical assistance, and structural community resources that catalyze the bioeconomy and keeps forests standing in the Brazilian Amazon.
Investment ask: Proponents Natura and Mauá Capital are seeking USD 3 million for the subordinated tranche, USD 1.5 million for the mezzanine tranche, and USD 10.6 million for the senior tranche, plus philanthropic capital for the enabling conditions and technical facility.
Data-Driven Energy Access for Africa uses artificial intelligence to leverage customer and geospatial data to better understand solar distributors’ portfolio repayment risk and offer them sustainable and competitive financing, thus expanding PAYG energy access.
Investment ask: Nithio is currently fundraising for USD 25-30 million to double its current capitalization by the end of 2021. They are seeking a mix of concessional and commercial capital to align with the repayment profiles in their distributor profiles. As an open-ended fund, Nithio is continually fundraising and will be looking to raise another US$100 million or more in the near to medium term, aiming to rapidly scale to the billions to achieve SDG 7.
The Guarantee Fund for Biogas is the first environmental guarantee fund in Brazil and the first to focus on the biogas industry, providing construction-phase loan guarantees to project developers in Brazil, enabling existing credit lines that are currently difficult to access for small- and mid-size biogas developers.
Investment ask: Proponent Abiogás is seeking USD 53 million, split evenly between concessional and commercial investors. The pilot will enable USD 271 million in credit operations along with its 10-year lifespan.
The Peace Renewable Energy Credits (P-REC) Aggregation Fund is a unique financing facility monetizing unbundled environmental attributes of renewable energy, to provide project developers in fragile countries with an additional revenue stream that they can use to unlock further finance.
Investment ask: Proponent Energy Peace Partners is looking to raise USD 500,000 in grants for the fund preparation period between now and mid-2023, to be used by the selected fund manager and EPP Advisory Services to establish the fund. Once appointed, they will be looking for USD 5.125 million in grants and the same amount in concessional equity to capitalize the fund.
The Smallholder Resilience Fund (SRF)is a blended investment fund and supporting venture studio that deploys synchronized investments and provides technical assistance to small- and medium-sized enterprises across the entire agricultural supply chain of high-value, climate-smart crops.
Investment ask: One Acre Fund seeks USD 2 million to hire a fund manager, develop legal structures and governance, and execute on initial investments, and USD 2.2 million to launch an avocado aggregation and cold storage company through the venture studio.