About This Fund
The USD 500 million closed-ended debt fund launched by responsAbility Investments AG, along with Germany's development bank KfW and the Dutch development bank FMO, aims to make an active contribution to CO2 reduction in Asia through targeted investments in low-emission technologies. This strategy focuses on sectors with high CO2 savings potential in Asia, including renewable energy, battery energy storage, electric mobility, energy efficiency, and circular economy. The goal is to ensure high transparency and target direct CO2 savings of an estimated 10 million tons over the entire lifetime of the investments. Additionally, the strategy will have a positive impact on selected Sustainable Development Goals (SDGs), in particular climate action (SDG 13), industry, innovation, and infrastructure (SDG 9), and responsible consumption and production (SDG 12). The blended finance structure of the climate investment strategy combines public funding with private capital to support high-impact transformative projects. The aim is to mobilize USD 500 million and involve a significant amount of private capital. This approach will enable institutional investors to participate in solving Asia's climate challenges while achieving an attractive risk-adjusted return on their portfolios. The strategy is being supported and invested in by KfW and FMO, with KfW's investment into the first loss tranche, and is ideally positioned to mobilize private funding at scale for investments that foster the energy transition and contribute to greenhouse gas abatement. The fund focuses in India and other Southeast Asia markets. As of March 2024, the IFC has disclosed a proposed US$100 million investment in the fund comprising of: (i) US$85 million senior tranche investment from IFC own account; and (ii) US$15 million junior tranche investment from IDA20 PSW BFF.