CDC Group, the UK’s development finance institution and impact investor, on Tuesday said it will invest over £3 billion to support emerging economies in Africa and Asia to combat the climate emergency.
The Group said the funds will be invested over the next five years across renewable power, infrastructure and agriculture sectors.
In addition, it will increase venture capital investment in early-stage, technology-based businesses that have the potential to play vital roles in the fight against climate change.
This will be supported by the £200 million Climate Innovation Facility announcement by the UK Government at COP26. The fund has been set up to provide finance for the most pioneering climate solutions in developing countries.
This is double the amount of climate finance CDC invested in 2017-2021.
Nick O’Donohoe, CEO of CDC, said the new commitments would make CDC a “global leader in climate finance” in Africa and South Asia.
He added: “COP is about making specific commitments to act, and this is demonstrated by a doubling of our financial support to those countries most vulnerable to the ravages of the climate emergency.”
The first beneficiary of the new fund is Pula, a Kenya based agritech business. The funds will help it to pilot a new “Pay-at-Harvest” insurance product, something which is virtually untested in Africa but has the potential to significantly increase smallholder uptake of insurance, delivering both development and climate impacts.
- $70 million investment in the Green Growth Equity Fund, India’s first dedicated climate finance fund, to make investments in a further six to eight innovative companies
- $28 million investment in Atlas Solar, the Pakistan solar power company, for a project that will generate 100MW of renewable energy
- $37 million investment in Africa Renewable Energy Fund II, a fund that invests in small hydro, wind, geothermal and solar projects across sub-Saharan Africa
- $10 million of follow up investment in M-Kopa, the Kenyan off-grid solar company that provides vital power for homes and communities in rural locations
- $14 million invested in Leap India Food and Logistics, an agri-warehousing and logistics company based in India