eB Capital Energy Transition and Climate Solutions Fund II

Rising temperatures, droughts and extreme rainfall affect Brazil's agriculture, water, energy and industry. Climate change causes average annual losses of USD 2.6 billion, but a shortage of patient, long-term equity capital holds back the transition, as high risk premiums raise the cost of capital for growth-stage companies and currency volatility deters foreign investors.

The fund aims to invest growth equity in around six to ten Brazilian climate companies, targeting the missing middle: businesses too large for venture capital but not yet mature enough for infrastructure or project finance. Investments will span new energies, such as battery storage; food security, such as biological inputs and irrigation; and circularity, such as advanced recycling and waste-to-energy. As an active owner, the fund will bring together technical partners, customers and follow-on investors.

The fund is part of Brazil's Country Programme and was selected in a public call run by the Brazilian Development Bank, secretariat of the Brazil Climate and Ecological Transformation Investment Platform, as one of three equity funds from 45 applicants. GCF invests on equal terms with other investors, and part of its return may offset currency losses for international commercial investors if the Brazilian real depreciates severely. eB Capital applied under GCF's project-specific assessment approach.