IFC mulls $100m investment in EM-focused Global Climate Partnership Fund

Photo from Global Climate Partnership Fund

The International Finance Corporation (IFC) is proposing an investment of up to $100 million in Global Climate Partnership Fund SA (GCPF), an emerging markets-focused closed-ended fund that seeks to reduce greenhouse gas emissions.

The fund is managed by responsAbility Investments AG, a Zurich-based impact investor, which is actively investing in India. The firm recently closed its climate debt fund at $151 million.

In its disclosure, the IFC said the proposed investment will support the fund in its effort to reduce greenhouse gas (GHG) emissions by fostering energy efficiency and renewable energy investments for small and medium enterprises and private households in emerging markets.

“IFC’s investment will also support the fund in maintaining its funding structuring, grow its portfolio investments, crowd-in additional private sector investors, and contribute to GHG reduction in eligible borrowing countries globally,” the global lender said.

The fund focuses on non-OECD economies, which are expected to account for the vast majority of growth in global energy demand over the coming decades.

Citing reports, GCPH said world energy-related CO2 emissions are projected to increase an average of 0.6 per cent per year as energy consumption is also forecast to increase by 28 per cent between 2015 and 2040, with most of the increase coming from non-OECD countries.

“To be most effective against climate change, we focus on non-OECD economies, which are expected to account for the vast majority of growth in global energy demand over the coming decades,” the fund said in its annual report.

Last year, GCPF partnered with India-based Roserve Enviro Private Limited for financing energy-efficient waste-water recycling systems offered to industrial clients in India. Mumbai-based Roserve provides wastewater recycling solutions to industrial clients on an operating lease, build-own-operate or build-own-operate-transfer basis.

The systems enable industries to reduce energy consumption while meeting wastewater recycling and discharge regulations and managing the environmental impact of their operations. The contracts range from a few months to up to 6 years.

In December 2018, Vietnam’s Nam A Commercial Join-Stock Bank received a credit facility and technical support from GCPF to launch its green lending activities in Vietnam.

The deal allows the bank to build a comprehensive range of green lending products to offer to its clients and further develop environment and social management practices. These products will include energy-efficient home appliances, buildings, transportation, agriculture as well as utility-scale renewable energy projects.

Over the lifetime of the fund, portfolio companies are expected to provide clean power to more than 150 million people, add 2,000 MW of clean energy generation capacity, and reduce CO2 emissions by 6 million tonnes.

“The investment is expected to help promote sustainability by demonstrating to the market the benefits of extending climate financing across emerging markets. It will also promote competitiveness through capacity building, and demonstration effects,” IFC, a member of the World Bank Group, said.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.