The International FInance Corp., the World Bank’s private finance group, committed $50 million to responsAbility’s Asia Climate Strategy, which makes debt investments in companies and projects supporting the decarbonization of fossil fuel-reliant Asian economies. The Swiss impact manager launched the fund in 2023, the year after it was acquired by M&G. It has raised $414 million toward a $500 million goal to invest in renewable energy and energy efficiency, electric mobility and circular economy opportunities.
The portfolio includes Singapore-based KIS Group, which manages waste-to-energy facilities in Indonesia and India; wastewater treatment company CleanEdge Resources; and India-based EV battery swapping startup Battery Smart.
Blended climate finance
ResponsAbility’s Asia Climate Strategy leverages public concessional capital in a first-loss junior tranche to mobilize private investment dollars for its senior tranche.
“This model helps to scale up clean energy projects and fosters a more favorable investment environment in [emerging markets], driving long-term, sustainable growth,” the investor writes in its “Beyond the numbers” impact report.
The fund was anchored by KfW and FMO, the German and Dutch development banks. The IFC invested in the fund’s senior tranche.
ResponsAbility did not respond to ImpactAlpha’s questions about the IFC’s commitment by press time.
Adaptation expansion
The new fund primarily focuses on green energy infrastructure in India, Vietnam, Indonesia and other Asian emerging markets. ResponsAbility last month announced that it was broadening its overall climate strategy to include adaptation. The firm makes these investments by lending to other financial institutions with green lending programs for construction, agriculture, water treatment and other key economic sectors.
