U.S. International Development Finance Corporation (DFC) has announced a rolling Call for Applications from private equity, growth capital, infrastructure, and venture capital fund managers seeking DFC investment for funds targeting climate mitigation, adaptation, and solutions.
In support of President Biden’s Executive Order on Tackling the Climate Crisis at Home and Abroad and the administration’s Leaders Summit on Climate starting, the Call for Applications is one of the new climate and climate-focused investment initiatives the agency is pursuing to help developing countries reduce emissions, increase renewable energy usage, protect ecosystems, and enhance resilience.
“Climate change is negatively impacting health and productivity, food production, and critical infrastructure around the world, but people in developing countries are particularly vulnerable to the impacts from climate change,” said DFC Chief Operating Officer David Marchick. “This Call for Applications will help DFC identify opportunities to mobilize private sector investment in innovative and impactful solutions to climate change, bolstering climate resilience across developing countries.”
The impacts from climate change, along with the health and economic impacts from COVID-19, have the potential to reverse significant economic gains made in developing countries over the past several decades. DFC is utilizing its financing tools to facilitate increased private sector investment that addresses climate change and drives climate-focused investment in developing countries.
The Call for Applications is one action DFC is taking to leverage its toolkit to support climate action in emerging markets. DFC is committed to helping developing countries mitigate and adapt to the impacts of climate change while promoting sustainable economic growth.
Eligible funds should advance strategies targeting climate mitigation, adaptation, and resiliency, including renewable energy, energy efficiency, sustainable forestry, climate-resilient infrastructure, e-mobility, technology to reduce carbon, battery storage, smart infrastructure, agriculture diversification, and technology-enabled climate mitigation and adaptation solutions in DFC-eligible countries.
DFC is targeting funds with a total capitalization of $100 million or more, including the DFC commitment. The investment amount may range from $10 million to $400 million in equity or debt financing but will be limited to no more than 20% of a fund’s total capitalization, as determined by DFC.