Strengthening Climate Investments With Blended Finance

    Stockholm (NordSIP) – ResponsAbility, a Zurich-based impact asset manager, announced it would continue to manage the US$670 million Global Climate Partnership Fund (GCPF), a fund targeting climate change mitigation in emerging markets.

    ResponsAbility is a leading impact investor with a 16-year track record in financing sustainable and inclusive businesses in emerging economies. GCPF tackles the shortage of appropriate funding for low-carbon projects in developing economies. Set up as a public-private partnership, the fund focuses on financing energy efficiency and renewable energy projects for SMEs and private households, primarily in cooperation with local financial institutions, but also directly.

    “We are delighted to have been confirmed as the investment manager for this highly successful investment fund. Climate change concerns us all, and it is imperative that we take action,” said Antoine Prédour, Head of Energy Debt Financing, speaking on behalf of responsAbility. “By partnering with public and private investors as well as financial institutions, energy companies and project developers in emerging countries, we channel much-needed capital into climate change mitigation in geographies that will see the biggest increase in emissions in the years to come.”

    The fund was launched as a public-private partnership in 2009 and has been managed by responsAbility’s energy investment team since 2014. Over the last five years, it has almost tripled its invested portfolio and disbursed close to US$ 400 million in climate loans in 24 developing countries. These investments facilitated 17 million tonnes of CO2 savings worth emissions and to install 500 MW of clean energy capacity.

    “When the fund was set-up in 2009, the global discussion on climate change and CO2 reduction was still nascent,” commented KfW’s Claudia Arce, who has chaired the fund’s board over the past four years, explaining the decision to extend the mandate. “Under responsAbility’s management and with a team that’s passionate about creating impact through investments, the fund has strongly contributed to strengthening climate investments in small and medium-sized companies in emerging markets.”

    Most recently, responsAbility was in the news for launching an innovative Collateralised Loan Obligation (CLO) for Microfinance and SMEs. Earlier this week, NordSIP was invited at an event organised jointly by responsAbility, the IFC and Alecta, one of the anchor investors of the new CLO. A summary of the event will follow shortly.

    Image by Åsa Lundqvist from Pixabay

    Filipe Albuquerque
    Filipe Albuquerque
    Filipe is an economist with 8 years of experience in macroeconomic and financial analysis for the Economist Intelligence Unit, the UN World Institute for Development Economic Research, the Stockholm School of Economics and the School of Oriental and African Studies. Filipe holds a MSc in European Political Economy from the LSE and a MSc in Economics from the University of London, where he currently is a PhD candidate.

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