Zurich, 18 May, 2018 — The responsAbility-managed climate fund targeting emerging economies has seen a 48 % increase in funding commitments in 2017 which reached USD 500 m in early 2018, establishing the fund as an important player in the climate finance sector open to private investors. Total expected lifetime CO2 reductions for all projects financed by the fund since inception reached 10 m tonnes.
Open configuration options responsAbility has been acting as investment manager of a globally active climate fund targeting emerging economies since 2014. Set up as a public-private partnership, the fund tackles the shortage of appropriate financing for low-carbon projects in emerging economies and finances energy efficiency and renewable energy projects for SMEs and private households, primarily in cooperation with local financial institutions.
In 2017, funding commitments to the climate fund increased by 48 % or USD 200 m to a total of USD 616 m at year-end. Importantly, the share of private investors in the fund doubled to over 30 % of total liabilities.
Over the same period, the fund further diversified its investment portfolio, adding 9 partner institutions and bringing the number of investment markets up to 22 across four continents. At the end of 2017, the fund’s 30 partner institutions had disbursed sub-loans amounting to USD 137 m, a 53 % increase over 2016.
Investment volume grew by 43 %, the highest year-on-year growth seen in the past five years. With USD 482 m invested volume at the end of 2017, the psychologically important USD 500 m threshold was crossed in early 2018, establishing the fund as a successful major player in the climate finance sector open to private investors.
In line with the fund’s mission to mitigate climate change, projects financed since inception contributed over 10 million t of CO2 emission reductions. Projects financed in 2017 contributed 1.7 million t of CO2 to this total.
Antoine Prédour, Head Energy Debt Financing at responsAbility, said: “This strong growth reflects the confidence of both public and private investors in the fund’s ability to scale up climate financing in developing countries with the objective to effectively combat climate change while delivering attractive returns for investors.
About responsAbility Investments AG (responsAbility.com) responsAbility Investments AG is a leading asset manager in the field of development investments that offers professionally managed investment solutions to private, institutional and public investors. The company supplies debt and equity financing to firms in emerging economies and developing countries, targeting the inclusive finance, renewable energy and sustainable agriculture sectors. responsAbility currently has USD 3 billion of assets under management invested in 540 companies in 90 countries.
In the area of climate financing, responsAbility has been acting as investment manager of a globally active climate fund targeting emerging economies since 2014. The fund tackles the shortage of appropriate financing for low-carbon projects in developing economies and finances energy efficiency and renewable energy projects for SMEs and private households, primarily in cooperation with local financial institutions. In early 2018, the fund’s invested volume reached USD 500 m.
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