Criteria

Investment offering and eligibility

To realise its mission of mitigating climate change, GCPF targets its investments at developing and emerging economies with high greenhouse gas emissions and significant potential to improve energy efficiency.

Energy efficiency and renewable energy

GCPF mainly supplies financing to local financial institutions, which provide sub-loans for energy projects that benefit small and medium-sized businesses and private households in particular. GCPF also finances energy efficiency and renewable energy projects directly. Eligible projects cover different sectors and loan sizes.

  • Energy efficiency projects: Eligible projects must provide projected CO2 savings of at least 20%
  • Renewable energy projects: Most commercially viable renewable energy generation technologies are eligible for financing, with the exception of bioliquid or biofuel production. GCPF targets renewable energy projects for the retail market, such as home solar systems, as well as small-scale renewable generation plants.

Financial institutions

GCPF funds local financial institutions that:

  • Are committed to building a green lending portfolio
  • Meet GCPF’s social and environmental standards

GCPF offers:

  • Dedicated funding in the form of senior or subordinated debt
  • Mid to long-term financing
  • Total facilities usually amounting to USD 10 million – USD 30 million, with flexible funding schedules
  • Financing of up to 49.9% of tier 1 capital and/or up to 25% of total assets

Direct investments

GCPF funds small scale projects (typically 15 MW) that:

GCPF offers:

  • Direct funding primarily in the form of senior debt
  • Maturities of up to 15 years
  • Typical deal size of between USD 5 million and USD 15 million