Incubating tailor-made financial solutions
We seek to design dedicated blended-finance models that allow more capital to be deployed to achieve sustainable goals. Thanks to our unique approach and experience developing sustainable infrastructure projects on the ground, we have developed the know-how to structure blended-finance investment funds.
The Subnational Climate Fund (SCF)
Catalytic was a key partner in the creation of the SCF. Dedicated to mid-sized ($5-75 M USD) infrastructure projects, focus areas include:
Waste and sanitation
In April 2021, with support from the Green Climate Fund (GCF), the SCF launched both the Technical Assistance program (TA), managed by the International Union for Conservation of Nature (IUCN) and executed in partnership with Gold Standard and Catalytic Finance Foundation, as well as the Equity Fund, managed by Pegasus Capital, an impact fund manager. In total, 42 countries have signed up to benefit from the initiative.
The robust process behind the SCF across the entire value-chain highlights the potential of how projects can be similarly developed:
Deal sourcing & Project preparation: Pre-feasibility and feasibility assessment, and Environment Social Impact Assessment identified more investable projects
Capacity building: Improved project design and development at an early stage, created an enabling environment for sustainable finance
Measuring impact: Impact identification and optimization, measurement, verification and reporting
How we got the SCF off the ground
The Global Fund for Coral Reef (GFCR)
The UNDP initiative launched The Global Fund for Coral Reef with support from Prince Albert II of Monaco’s Foundation, BNP Paribas, and Pegasus.
Catalytic supported the GFCR to secure concessional equity, making blended-finance models attractive to private investors. In doing so, we contributed to the design and writing of the concept note towards the GCF and played a leading role in securing the requested number of Non-Objection Letters from National Designed Authorities to obtain GCF’s approval during their October 2021 Board meeting.