Global Subnational Climate Fund (SnCF Global) – Equity

  • Mitigation
  • Under implementation
Date approved
13 Nov 2020
Est. completion
20 Apr 2040
ESS Category
Intermediation 2
Financing
Private sector
Entity
Pegasus Capital Advisors

Overview

The goal of the Sub-national Climate Fund Global (SnCF Global or the “Fund”) is to catalyze long-term climate investment at the sub-national level for mitigation and adaptation solutions through a transformative financing model. The SnCF Global’s business model is designed to attract primarily private institutional investment and to deliver certified climate and Sustainable Development impacts and Nature-based Solutions at global scale (SDGs, NbS). The subnational level is key: 70% of known climate solutions are located within the boundaries of subnational authorities. Significant additional investment is needed in this sector to achieve the climate goals of the Paris Agreement. The SnCF Global presents a positive disruptive solution on how subnational climate projects should be structured, de-risked, and funded by both private and public investors, while monitored and benchmarked at the highest level of rigor and quality.

The Fund is designed to overcome project-level barriers and limitations in attracting private investment that leads to chronic underfunding of bankable mitigation and adaptation projects at the sub-national level, specifically at the deal size of USD 5 million to 75 million. Thousands of high merit sub-national projects are bypassed by commercial financing because investors prefer perceived safer and larger investments. The Fund firmly believes that GCF anchor funding and first-loss coverage will unlock both public investors and more importantly, private institutional investors. With GCF support, these investors have expressed willingness to co-invest. This is the first time an impact equity fund mobilizes public (20 %) and private sector (80%) funding at scale to de-risk sub-national middle scale infrastructure projects. 

Result areas

Countries

Regions

Priority groups

Project timeline

  • Pipeline

    1,172 days

    • Concept note received

    • Funding proposal received

    • Cleared by GCF Secretariat

    • Legal opinion on AE's Internal Approval

    • Cleared by iTAP

  • Approved

    159 days

    • Approved by GCF Board

    • FAA executed

  • Under implementation

    1,883 days so far

    • FAA effective

  • To be completed

    5,058 days to go

    Not started

  • Total project value $ 750 million

  • Tonnes of CO2 equivalent avoided 77.6 million

Financing

GCF-financing

0.0%

USD

Co-financing

0.0%

USD

USD 750 million

Show details

GCF-financing

33% disbursed

  • Equity USD 150,000,000
  • Total GCF-financing USD 150,000,000

Co-financing

  • Equity USD 600,000,000
  • Total co-financing USD 600,000,000

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