Business & Philanthropy Climate Forum

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CLIMATE FINANCE

Blended Finance Vehicle: A structure that will unlock USD ~11 Bn of private capital

Context and challenges

​Current yearly climate investments only meet ~20-30% of the needs to reach Net Zero by 2050.

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Investments in EMDEs1 will have to triple by 2030 – from USD 0.8 to 2.3 Tn – otherwise the region will be responsible for the bulk of the global emissions by 2050.

​ A major barrier to increasing investment is the lack of bankable climate projects and businesses, often due to limited resources and low early investor engagement.

Initiative Description

​Allied Climate Partners (ACP) is a USD ~1 Bn blended finance platform2 focused on increasing the number of bankable climate-related projects and businesses in EMDEs1 with a focus on energy, water, waste management, and other climate positive areas3.

​ACP is demonstrating that catalytic capital can accelerate the creation and scaling of commercially viable solutions for early-stage investments in project development.

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The platform focuses on philanthropic and junior equity to anchor each fund with first-loss capital, pari passu on the upside. Regional managers leverage the anchor investment to raise 3x from other MDBs, DFIs, private investors and regional funds, to finance early development stage projects.

ACP is expecting to leverage USD ~1 Bn funds in order to unlock USD ~11 Bn in additional funds to be invested in bankable projects in the target regions of Southeast Asia, Africa, India, Caribbean and Central America.

Commitments from Business & Philanthropy

Join as an equity investor in one of the ACP’s funds

Join as a strategic partner to support the development and financing of bankable, climate-related projects and businesses

How to get involved?

 

  1. Emerging Markets and Developing Economies  

  2. The ~1Bn amount is supported by Philanthropy DIF and Senior Private Sector debt

  3. Renewable power, storage and transmission, green manufacturing, e-mobility.

Source: IAE, IFC

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