FP152
Global Subnational Climate Fund (SnCF Global) – Equity
Global Subnational Climate Fund (SnCF Global) – Equity
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.
Project timeline
Pipeline
30 Aug 2017 • 1172 days
Concept note received
30 Aug 2017
Funding proposal received
31 Dec 2019
Cleared by GCF Secretariat
30 Mar 2020
Legal opinion on AE's Internal Approval
16 Oct 2020
Cleared by iTAP
19 Oct 2020
Approved
13 Nov 2020 • 159 days
Approved by GCF Board
13 Nov 2020
FAA executed
23 Feb 2021
Under implementation
20 Apr 2021 • 1,696 days so far
FAA effective
20 Apr 2021
Disbursement - USD 50,000,000
21 May 2021
To be completed
20 Apr 2040 • 5,245 days to go
Four regions
- Africa
- Asia-Pacific
- Latin America and the Caribbean
- Eastern Europe
Forty-two countries
- Côte d'Ivoire
- Gabon
- Kenya
- Rwanda
- South Africa
- Indonesia
- Chile
- Guatemala
- Mexico
- Uruguay
- Morocco
- Tunisia
- Burkina Faso
- Brazil
- Dominican Republic (the)
- Cambodia
- Fiji
- Cameroon
- Mozambique
- Nigeria
- Togo
- Uganda
- Haiti
- Honduras
- Panama
- Mauritania
- Albania
- Montenegro
- Costa Rica
- Ecuador
- El Salvador
- Dominica
- Jamaica
- North Macedonia
- Myanmar
- Guinea
- Mali
- Bahamas
- Democratic Republic of the Congo (the)
- Senegal
- Jordan
- Lebanon
Three priority groups
- Least Developed Countries
- Small Island Developing States
- African States
-
Financing
- Private sector
- Public sector
-
Size
- Micro
- Small
- Medium
- Large
GCF financing33% disbursed
| Instrument | Amount |
|---|---|
| Equity | USD 150,000,000 |
| Total GCF Financing |
|---|
| USD 150,000,000 |
Co-financing
| Co-financer | Instrument | Amount |
|---|---|---|
| Co-Financing | Equity | USD 600,000,000 |
| Total Co-Financing |
|---|
| USD 600,000,000 |
GCF Contacts
General media inquiries
GCF CommunicationsSend e-mail
Request for information
GCF Information DisclosureRequest information about this project
Project complaints and grievances
GCF Independent Redress Mechanism (IRM)Phone +82 32 458 6186 (KST)
File a complaint
Integrity issues
GCF Independent Integrity Unity (IIU)Phone +82 32 458 6714 (KST)
Send e-mail
Entity
More contacts
National Designated Authority
Documents
| Title | Type | Date |
|---|---|---|
| Environmental and social safeguards (ESS) report for FP152: Global Sub national Climate Fund (SnCF Global) - Equity | Environmental and Social Safeguards report | 05 Oct 2020 |
Pages
News + Stories
GCF signs public-private partnership agreements to launch Global Subnational Climate Fund
23 Feb 2021 / The Green Climate Fund (GCF) has joined forces with Pegasus Capital Advisors and the International Union for Conservation of Nature (IUCN) in an innovative bundling of public-private financing to plug a funding gap for sub-national climate initiatives. GCF announced it has signed funding agreements with both organisations during a virtual briefing session for UN representatives in New York about the Global Subnational Climate Fund (SnCF Global), created to address a major deficit in climate finance.