In the wake of an agreement at the COP29 climate summit that was derided as woefully inadequate, mobilizing private climate capital is more essential than ever.
Climate Policy Initiative and Convergence are supporting novel funding mechanisms with a combined $2 million in grants from their Catalytic Climate Finance Facility. The five funds will test solutions to some of the stickiest and least-invested climate challenges, including energy access in conflict zones, biodiversity protection and the blue economy.
London-based Ponterra, for example, is working to restore native species and protect biodiversity through reforestation projects with farmers and landowners in Latin America. Its planned $100 million Biodiversity Bridge Vehicle will generate income and returns through biodiversity and carbon credits. Also supporting farmers is Nairobi-based ADAPTA, which is looking to pair its climate risk farm management software with loans to help African farmers transition to regenerative practices.
Coastal ecosystems
Blue Alliance works with governments in Africa and Southeast Asia to manage designated marine protected areas, or MPAs, to meet restoration and conservation goals. Its planned $65 million blended finance fund would provide grants to cover MPA management costs, and low-cost loans to social enterprises working within the MPAs to support local livelihoods.
Separately, The Nature Conservancy recently facilitated a $300 million debt-for-nature swap for the government of the Bahamas using commercial and catalytic capital to expand conservation efforts in the island nation’s MPAs.
Climate resilience in Africa
Among the most creative structures in the cohort is the P-REC Aggregation Facility from Energy Peace Partners and Cameo, which is built around a tradeable commodity for clean energy generation. Peace Renewable Energy Credits aim to help solar and hydro project developers raise the upfront capital they need for projects in conflict-prone areas (see, The Liist).
BFA Global’s Catalyst Fund also inked funding from the Catalytic Climate Finance Facility. The firm is raising a $40 million venture fund for early stage startups supporting climate adaptation in Africa.
