New York, 28 Sept 2023 – The Global Innovation Lab for Climate Finance (the Lab) endorsed six innovative financial instruments to unlock USD 795 million for climate action in challenging sectors such as climate resilience, conservation, and housing. This strong Lab cohort has already mobilized over USD 9 million. Three of these solutions focus specifically on the African continent.
“This year, we expanded our Africa program to include both the East and Southern Africa regions,” said Ben Broché, head of the Lab program. “We are super excited about this diverse group of instruments that will incentivize landowners in Kenya to restore and conserve their land, scale up conservation of gender-inclusive and climate-resilient housing across Morocco, and support pre-seed climate adaptation startups throughout the continent.”
Climate Resilient Landscape Finance (CRLF) is an innovative and concessional debt facility that addresses underlying challenges to climate-resilient land management in and around African conservation areas. Platcorp Group, an impact-focused African asset manager, is developing this instrument with Conservation Capital, a conservation finance boutique advisory firm, and Dascot Limited, a technical conservation consultancy.
“Land in and around African conservation areas – which are critical areas for biodiversity conservation, carbon storage, and indigenous people – are being rapidly fenced and converted for extractive agriculture and other industries to exploit short-term commercial gain,” said Platcorp Group and CRLF Lead Jonty Rawlins. “CRLF finds ways to create innovative incentives for landowners to adopt sustainable land use practices by increasing the value of carbon, biodiversity and wildlife, and sustainable production of livestock, sharing these benefits with local communities, and improving local management capacity.”
Social Infra Ventures (SIV) aims to develop green, affordable housing in secondary cities in Morocco using a gender-inclusive approach throughout the community planning, design, and financing processes. SIV is a housing company set up by incubator and sponsor Cardano Development. The instrument has already secured a USD 1.24 million grant from the Green Climate Fund.
Catalyst Climate Resilience Fund is an impact fund and accelerator to support pre-seed climate adaptation startups that improve the resilience of vulnerable African communities. The Catalyst Fund is an investment management firm focused on equitable and inclusive finance. The Catalyst Fund announced its first close of USD 8.6 million during Africa Climate Week.
Instruments launched by the Lab utilize a wide array of financial mechanisms, from concessional debt facilities to private equity impact funds and accelerators. Following endorsement, these instruments will continue fundraising to build on the USD 3.5 billion previous Lab’s solutions have already mobilized.
The Lab is an incubator program that develops innovative financial mechanisms to drive private investments into climate change mitigation and adaptation in developing economies. The Lab’s African regional program addresses issues unique to the Southern African Development Community (SADC) and the East African Community (EAC) regions. Climate Policy Initiative serves as the Secretariat.
About the Lab
The Global Innovation Lab for Climate Finance identifies, develops, and launches innovative finance instruments that can drive billions in private investment to action on climate change and sustainable development. Bloomberg Philanthropies and the governments of Canada, Germany, the United Kingdom, and the United States have funded the Lab’s 2023 programs. Climate Policy Initiative serves as the Secretariat and analytical provider.