ORU Fogar works with R20 to determine the projects of the SCF Global

What’s SCF Global ?

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.

he 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.

This is the website : https://www.subnational.finance

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.

Where will the role of this fund be reflected ?

Forty two countries sent no objection letters to the Secretariat of the GCF, formally supporting the initiative.

Sub- Saharan Africa : Burkina Faso; Cameroon; Cote d’Ivoire; Democratic Republic of the Congo; Gabon; Guinea; Kenya; Mali; Mozambique; Nigeria; Rwanda; Senegal; South Africa; Togo; Uganda. 

Asia- Pacific: Cambodia; Fiji; Indonesia; Myanmar. 

Latin America and the Caribbean : Bahamas; Brazil; Chile; Costa Rica; Dominica; Dominican Republic; Ecuador; El Salvador; Guatemala; Haiti; Honduras, Jamaica; Mexico; Panama; Uruguay. 

Mediterranean: Albania; Jordan; Lebanon; Mauritania; Montenegro; Morocco; North Macedonia; Tunisia.

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. Regions must submit projects on the web-based online platform : https://www.subnational.finance/project-submission/. 

The ORU Fogar holds meetings with R20 to introduce to the member regions of The ORU Fogar in detail. During the meeting, the regions could discuss the terms and conditions of the proposed partnership and provide technical explanations for the submitted projects.

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.