Presentation of Sub national Climate Fund 

On February 10, Christophe Nuttall, Executive Director of R20 and his team presented the Subnational Climate Fund to the President of ORU Fogar, Rachid el Abdi. This fund is dedicated exclusively to regional projects to face the challenges of climate change, with projects in the field of renewable energy, waste management, water sanitation or agriculture. Given the interest of the topic, it was agreed to present the initiative to all the member regions of ORU Fogar located in countries likely to work with the Fund.

Thus, presentations of the SCF have already been made to the regions of Ivory Coast, Uruguay, Morocco, Burkina Faso, Kenya and will be made with those of Ecuador, Chili and Senegal. During the meeting, the regions can discuss the modalities of the proposed association and can have technical explanations on the presentation of the project.

The Subnational Climate Fund is a consortium composed of Pegasus Capital (equity investment fund manager), the International Union for Conservation of Nature, Gold Standard and the R20.

The SCF Global consiste of two funds : the first fund provides 28 million dollars in technical assistance to enable local and regional authorities to prepare and submit projects with impact and acceptable to banks ; and the second is an equity investment fund of 750  million dollars.

R20 and its role in SCF Global

The R20 – Regions of Climate Action was originally a member organization of ORU Fogar, established by the former California governor Arnold Schwarzenegger in September 2011. It is a coalition of regional governments whose task is to accelerate investment in infrastructure in all the regions of green economy in order to make a significant contribution to the achievement of sustainable development goals. This is based on the view that regional governments are a powerful force for changes and are best suited to take action and implement green projects.

Today, R20 is the technical unit of SCF Global, responsible for the technical assistance, especially the feasibility study, and it establishes the transmission link with the investment fund part to make the selected project have banking capability.

What’s the project ?

The fund is dedicated to projects of the territories to address the challenges of climate change. The project must meet a specific number of criteria (geography, sector, size, impact, ROI target) specified on the website. 

Although the duration of the technical assistance and equity investment fund is relatively long (5 and 7 years, respectively), only about 30 to 40 projects will receive investment (with an average investment scale of 30 million dollars).

This is a particularly innovative fund because it is independent, and it has technical assistance fund with a high-level consortium specializing in territorial projects, and in view of the great demand for funds in various regions that account for more than 70% of who address climate changes, and who are willing to invest in sustainable infrastructure, it has more and more public and private investors, the fund will continue. Therefore, if the projects proposed on this platform are not accepted by the first initiative, they can be recognized in other funds in the future.

 

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