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CPI PARTNER UPDATE: Catalytic Climate Finance Facility awards USD 2 million to new cohort of blended finance vehicles
The selected five grantees will receive a total of USD 2 million in funding to test, structure, and expand their climate finance solutions, which focus on diverse regions such as Sub-Saharan Africa, Southeast Asia, Latin America, and the Caribbean.
These vehicles are designed to support a range of climate initiatives, from climate-resilient agriculture and marine conservation to biodiversity, climate adaptation, and renewable energy. By employing blended finance solutions, including debt, project finance platforms, and venture capital, the CC Facility aims to unlock private capital and de-risk investments in emerging markets.
Introducing the 5 Selected Vehicles
- ADAPTA Climate Finance Facility (ACF)
- USD 50 million debt facility to support smallholder farmers in Sub-Saharan Africa, leveraging climate risk assessment technology to de-risk lending and promote regenerative agricultural practices.
- Focus: Food security and climate resilience, beginning in Kenya.
- Biodiversity Bridge Vehicle (BBV)
- USD 100 million project finance platform that generates carbon and biodiversity credits through mixed-species afforestation projects.
- Focus: Monetizing biodiversity alongside carbon revenues.
- Blue Alliance Blended Finance Vehicle
- USD 65 million facility to support 2 million hectares of Marine Protected Areas (MPAs) across Sub-Saharan Africa and Southeast Asia.
- Focus: Enhancing MPAs operations and developing reef-positive businesses in sectors like sustainable fisheries, ecotourism, and blue carbon projects.
- The Catalyst Fund Resilience I
- USD 40 million venture capital fund investing in pre-seed climate adaptation startups in Africa.
- Focus: Fintech for climate resilience, sustainable livelihoods, and climate-smart essential services.
- P-REC Aggregation Facility (PAF)
- USD 11 million pilot project finance facility to mobilize capital for solar and hydro mini-grid projects in fragile Sub-Saharan African countries through Peace Renewable Energy Certificates (P-RECs).
- Focus: Solar and hydro mini-grids, with P-RECs offering high social and environmental value.
Read about this collaboration and the finance vehicles here.
With funding from three anchor donors—Bill & Melinda Gates Foundation, Global Affairs Canada, and Australia’s Department of Foreign Affairs and Trade—the CC Facility targets one of the main barriers to scaling a climate blended finance vehicle: the acceleration stage, when solutions face a critical valley of death as they try to scale to broader market implementation.
Following the selection of this first class of blended finance vehicles, the CC Facility will open for its next cycle of applications on March 10, 2025.
www.ccfacility.org/
www.climatepolicyinitiative.org/
www.convergence.finance/
www.climatepolicyinitiative.org/press-release/cc-facility-new-class-2024-1/
www.wearevuka.com/speaker/simon-just/
About the author
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