Advice on the design of climate Public-Private Partnership funds

Funding Solutions & Capital Markets, GBRW Consulting, GBRW Group, Green Finance, Sustainable & Development Finance

GBRW was contracted by the Department of International Development (DFID) to provide expertise on the design of the Climate Public-Private Partnership (“CP3”) funds.

There are two funds, one involving DFID and the Asian Development Bank (ADB) and one involving DFID and the International Finance Corporation. Equity investment in the Climate Public Private Partnership Asia Fund (CP3 Asia) will total £60,000,000 to catalyse low carbon investments in Asia. Equity investment in the IFC Catalyst Fund (CF) in the amount of £50,000,000 will focus on strengthening the financial infrastructure for low carbon investments globally. The fund design is expected to mobilise nearly US$ 10bn of additional private sector finance.

According to DfID the aim of CP3 is to…

“…demonstrate that climate friendly investments in developing countries, including in renewable energy, water, energy efficiency and forestry are not only ethically right but also commercially viable. It aims to attract new forms of finance such as pension funds and sovereign wealth funds into these areas by creating two commercial private equity funds of funds which will invest in subfunds and projects in developing countries, creating track records of investment performance which should in turn encourage further investments and accelerate the growth of investment in climate.”

And…

“…CP3 seeks to leverage funding to create 2140 MW of clean energy; support 34,000 jobs, and achieve 53 million tonnes of CO2 emissions reduction, over its lifetime to 2026."

Deliverables included:

- Advice on the design of the CP3 funds;

- Management of development finance stakeholders;

- Development of a position paper;

- Advice on documentation and commercial issues; and

- Selection of the investment manager for the DFID/ADB fund.