Successful energy financing through responsAbility Investments

Climate fund investments reduce CO2 emissions through 48,000 energy loans

 

The responsAbility-managed energy fund focused on climate investments in developing countries more than doubled its climate impact in 2016. Alongside monetary benefits, the energy projects financed until the end of 2016 help to reduce CO2 emissions by 8.6 million tonnes over the lifecycle of the installed plants and equipment, double the amount recorded in 2015. At the same time, the funded projects generated more than three times as much renewable energy as in 2015.

The climate fund, which was launched in 2009, invests in 18 developing countries, mostly by partnering with local financial institutions. The latter use the funding to offer their clients energy loans, for example to modernise vehicle fleets by adding hybrid vehicles or to install energy-efficient heating or cooling systems. In addition, the fund finances major projects such as solar power plants directly.

In the financial year 2016, the fund’s 19 partner financial institutions handed out 14,000 green loans, 42% more than in 2015. 

From the fund’s launch to the end of 2016, 48,000 energy loans totalling USD 333 million have resulted in CO2 emission reductions of 8.6 million tonnes over the lifecycle of the installed plants and equipment, the equivalent of the annual emissions of 1.8 million cars. 

Renewable energy projects financed through the fund at the end of 2016 were generating 
630,000 MWh of electricity per year, more than triple the amount recorded in 2015. 

According to Antoine Prédour, Head of Energy Debt Financing at responsAbility, the increase in energy loans would not have been possible without the close cooperation with financial institutions in developing countries. “As the cost of alternative sources of energy declines, climate financing is also becoming more attractive in developing countries. However, awareness of the opportunities is frequently still very limited. We closely support our partner institutions and help them to develop green lending products that are very well-received in their markets.“

About responsAbility Investments AG
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. 

responsAbility currently has USD 3.1 billion of assets under management invested in over 550 companies in 97 countries. Founded in 2003, the company is headquartered in Zurich and has local offices in Bangkok, Hong Kong, Lima, Luxembourg, Mumbai, Nairobi, Oslo and Paris. Its shareholders include a number of reputable institutions in the Swiss financial market and its own employees. responsAbility is regulated by the Swiss Financial Market Supervisory Authority FINMA.

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This information was produced by responsAbility Investments AG together with its partners with the greatest of care and to the best of its knowledge and belief. However, responsAbility Investments AG provides no guarantee with regard to its content and completeness and does not accept any liability for losses which might arise from making use of this information. The opinions expressed in this information material are those of responsAbility Investments AG at the time of writing and are subject to change at any time without notice. If nothing is indicated to the contrary, all figures are unaudited. This material is provided for information purposes only. It does not constitute an offer or a recommendation to buy or sell financial instruments or services and does not release the recipient from exercising his/her own judgment. It is expressly not intended for persons who, due to their nationality or place of residence, are not permitted access to such information under local law. Neither this information material nor any copy thereof may be sent, taken into or distributed in the United States or to any U. S. person. responsAbility Investments AG is not an investor and does neither provide direct nor indirect financing. The mentioned investments in the specific markets, countries, companies, institutions, instruments, or sectors are exclusively transacted by the investment vehicles managed or advised by responsAbility Investments AG. Every investment involves risk, especially with regard to fluctuations in value and return. Investments in foreign currencies involve the additional risk that the foreign currency might lose value against the investor's reference currency. It should be noted that historical returns and financial market scenarios are no guarantee of future performance.