Global Climate Partnership Fund

Luxembourg
Europe

http://www.gcpf.lu/

Industry:Investment
Date joined:23 April, 2019

The Global Climate Partnership Fund (GCPF) is an innovative public-private partnership dedicated to contributing to the mitigation of climate change through the reduction of greenhouse gas emissions. The Fund joined UNEP FI in order to join efforts and collaborate with likeminded market actors in achieving its mission: mitigation climate change.

It focuses on financing energy efficiency and renewable energy projects for SMEs and private households in developing countries, primarily in cooperation with local financial institutions. The Fund also finances projects directly. Investments should contribute significantly towards energy savings and the reduction of greenhouse gas emissions. Therefore, the Fund has set a threshold for any energy efficiency project that it finances to achieve at least a 20 % reduction in projected emissions. On the renewable energy (RE) side, the Fund targets small to medium sized projects that are beyond the reach of the traditional RE financing providers due to their small size and perceived lower bankability. GCPF attempts to maximize its impact by prioritizing countries with the most significant greenhouse gas emissions and the highest potential to increase efficiency.

Summary of sustainability strategy

The Fund’s mission is to mitigate climate change. The Fund aims to do so by investing in energy efficient technologies and renewable energy in developing countries.  To effectively formulate the Fund’s impact, the investment manager currently uses a number of development impact indicators linked to the UN Sustainable Development Goals (SDG). The main impact of the Fund is in the field of climate stability through the reduction of GHG emissions. However, through its financing, the Fund’s impact goes beyond climate change mitigation, with a positive impact on well-being, employment, resource usage and markets and infrastructure development in investee countries.

Climate stability (SDG 7,13) –  The Fund mobilizes private and public capital for climate finance. The demonstration effect of the Fund is expected to be conducive to the sustained participation of private investors in climate finance in developing countries.

Basic needs (SDG 3,7) – The Fund provides access to affordable and clean energy by extending loans dedicated to providing energy solutions (Solar Homes systems, solar appliances etc.) to low income households, directly or via financial institutions.

Well Being (SDG 3,11) – The Fund brings about improvements in health conditions by reducing domestic and ambient pollution levels, a leading cause of mortality among women and children in the developing world.

Decent work (SDG 8) – By investing in financial institutions, local companies and projects the Fund brings capital to developing countries, thus creating employment. By exploring new green lending products with financial institutions, the Fund fosters innovation and economic growth.

Healthy ecosystem and resource security (SDG 12) – The Fund supports sustainable use of resources, reducing a country’s material footprint by replacing fossil fuel usage with renewable energy.

Markets and infrastructure (SDG 9) – The fund supports industry innovation towards more sustainable and efficient technologies and develops countries’ infrastructure by supporting clean energy production.

Annual Report: https://www.gcpf.lu/reporting-news.html