Climate Finance | November 14, 2022

Philanthropic organizations commit $500 million for energy transition in developing countries

Roodgally Senatus
ImpactAlpha Editor

Roodgally Senatus

ImpactAlpha, November 14 — A three-year commitment by nine philanthropies will support energy transition projects by low- and middle-income countries and their partners in the Global South. Many of these countries have raised their climate ambitions even as they grapple with droughts, floods and other climate-related disasters, but need catalytic capital to help bring in private investors.

With wealthy nations falling short on still-insufficient promises of $100 billion a year, others are looking to help fill the gap. The new funds “will strengthen southern leadership and localization of solutions, especially in Africa where the gap of funding is the biggest,” said Saliem Fakir with the African Climate Foundation.

Climate philanthropy

Other organizations in the coalition include Ballmer Group, Sequoia Climate Foundation, Growald Climate Fund, Children’s Investment Fund Foundation and Bloomberg Philanthropies.

Earlier this year, Bloomberg Philanthropies committed $242 million in philanthropic capital to support clean energy efforts in developing countries in Latin America, Africa and Southeast Asia. It recently backed the Asian Development Bank’s Climate Innovation and Development Fund, a blended-finance fund that last week made its first two investments in electric mobility in India and Vietnam.