Global Climate Partnership Fund
As of: September 2021
To limit global heating and therefore the impacts of climate change, investment is required in energy efficiency, renewables and measures that mitigate the emission of greenhouse gases. The Global Climate Partnership Fund (GCPF ) offers this kind of financing to developing and emerging countries. Funding is provided either as a direct investment in specific projects or made available to local financial institutions. These institutions then disburse the funds in the form of loans to small and medium-sized businesses or private households. The GCPF is registered in Luxembourg and is managed by responsAbility Investments AG. The Fund increases the effectiveness of public money by mobilising additional financing from public and private investors for climate mitigation projects.
State of implementation/results
- Starting as an initiative of BMUB and KfW, the GCPF became a widely supported public-private partnership. Current shareholders include the Department for Business, Energy & Industrial Strategy of the UK government - BEIS of the UK, Ministry of Foreign Affairs of Denmark (DANIDA), the International Finance Cooperation (IFC), the Austrian Development Bank (OeEB), the Dutch Development Bank (FMO), a Swiss-based asset management company (responsAbility) carrying out the fund’s management, the pension fund of German medicines (ÄVWL) and the Dutch private bank ASN.
- As a structured fund with different risk tranches, the GCPF mobilized up to USD 392 m EUR for investments in energy efficiency and renewable energy (EE/RE) by the end of 2015. Appr. USD 284 m have been channeled as concessional loans from the GCPF to financial institutions in order to support their climate friendly lending business. The banks are then enabled to finance, for instance, solar irrigation pump distributor for smallholders.
- The overall mitigation potential of outstanding sub-loans accounts to appr. 7 m tCO2e, distributed across twelve countries. The majority of investments accounts to energy efficiency in buildings and the small-scale renewable energy deployment.
- The GCPF includes direct investments as well, such as the construction of a photovoltaic power plant in South Africa (generating up to 1.8 gigawatt hours of annual power).
- The Technical Assistance (TA) facility counts numerous projects to support the preparation of additional climate friendly investments on the basis of feasibility studies, environmental impact assessments, construction permits or the development of new and locally adapted EE/RE loan products. The GCPF also helps its partners to collect data on achieved GHG mitigation and ensure quality control.
- In September 2016 the fund organized the first “GCPF academy” to foster knowledge exchange on best practices among local financial institutions.