In 2016, the United Nations launched the Sustainable Development Goals in order to set the framework for organizations to come together to end poverty, protect the planet and ensure prosperity for all.
Given the large number and diversity of SDGs, they have been distilled into six themes relevant to business and investment. This Framework is based on a Cambridge University report In Search of Impact: Measuring the Full Value of Capital and allows to effectively report and monitor the Fund’s impact.
The six impact themes
The Fund provides access to affordable and clean energy by extending loans dedicated to providing energy solutions (Solar Homes systems, solar appliances etc.) to low income households, directly or via financial institutions.
The Fund brings about improvements in health conditions by reducing domestic and ambient pollution levels, a leading cause of mortality among women and children in the developing world.
By investing in financial institutions, local companies and projects the Fund brings capital to developing countries, thus creating employment. By exploring new green lending products with financial institutions the Fund fosters innovation and economic growth.
Healthy ecosystem & resource security
The Fund supports sustainable use of resources, reducing a country’s material footprint by replacing fossil fuel usage with renewable energy.
Markets & infrastructure
The fund supports industry innovation towards more sustainable and efficient technologies and develops countries’ infrastructure by supporting clean energy production.
Contributes to an increase of share of renewables and energy efficiency measures, reducing CO2 emissions.
Mobilizes private and public capital for climate finance. The demonstration effect of the Fund is expected to be conducive to the sustained participation of private investors in climate finance in developing countries.
GCPF’s activities have positive impact in each of the six themes directly contributing to seven of the United Nation’s 17 SDGs.
The Fund’s main impact is in the field of climate stability through the reduction of greenhouse gas (GHG) emissions. GHG emissions reductions can be achieved by employing renewable energy technologies for energy generation and by applying energy efficiency measures.
GCPF provides dedicated funding for both areas, mostly by financing local financial institutions, which in turn provide loans for renewable energy and energy efficiency projects that achieve at least a 20% reduction in GHG emissions.