Global impact leader responsAbility Investments has successfully expanded its Asia Climate Strategy, reaching more than $350 million in a third closing. This achievement surpasses initial private sector capital mobilization targets and marks a crucial milestone in the strategy’s progression.
The strategy now has over half of its total commitments from private sector investors, emphasizing its capacity to unlock substantial funding for climate solutions.
Targeting $500 Million by 2025
The strategy is positioned as one of the largest climate focused initiatives globally. It aims to obtain a $500 million target by 2025. By doing so, the strategy will continue making low emission solutions a priority across Asia, striving for a total CO2 reduction of 16 million tons over the lifetime of its assets.
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Following a strong start, the strategy has gained significant momentum. The third closing helped secure an additional $100 million from institutional investors. This success brought total private sector commitments to over $200 million. This amount accounts for more than half of the strategy’s total volume. Public and development finance institutions have contributed $154 million.
Blended Finance Structure Drives Growth
The strategy’s success is attributed to its effective blended finance structure, which unlocks large private sector investments in climate solutions. The German Federal Ministry for Economic Cooperation and Development (BMZ) authorized KfW to expand its junior capital commitment by €20 million. This boost reinforces the strategy’s credibility and catalyzes further investments.
Stephanie Bilo, Chief Client & Investment Solutions Officer at responsAbility, said, “Financing the energy transition in emerging markets like Asia requires close collaboration between the public actors and the private sector.”
Institutional investors can access appealing, risk-adjusted investment possibilities through their strategy and blended finance structure. This can also contribute significantly to the region’s decarbonization, she added.
Asia is the world’s largest emitter of greenhouse gases, contributing to more than 50% of the global CO2 emissions. Plus, the region is expected to witness a tremendous increase in energy demand by 2050. The responsAbility Asia Climate Strategy aims to address these challenges through targeted investments in climate friendly technologies and infrastructure.
ResponsAbility Investments’ expansion of its Asia Climate Strategy to $350 million marks a key milestone. This strategy will drive sustainable climate solutions across Asia and make a significant impact on reducing global emissions.