Sub National Climate Fund


SGA-R20 Global Sub-National Climate Fund

7th Generation Advisors is part of a broad coalition of partners that are working to accelerate sub-national infrastructure investments in the green economy. Our vision is to fast track the transition to inclusive, resilient and low carbon societies.

UPDATE!

On Friday, November 13th the UN Green Climate Fund approved a $150m investment (plus $18m in Technical Assistance funding) for R20’s Sub National Climate Fund. Details on GCF’s website at:

https://www.greenclimate.fund/project/fp152 (Sub National Climate Fund)

https://www.greenclimate.fund/project/fp151 (Technical Assistance)

Sustainable Infrastructure for People and the Planet

Sustainable Infrastructure projects improve lives, help to protect the environment and the natural ecosystems on which we depend. Renewable energy, waste management, sustainable agriculture, water and sanitation and energy efficiency projects can deliver huge positive mitigation and adaptation benefits – enabling access to vital services that positively impact on health, social and economic wealth, security – and the climate. But investable projects are not being developed fast enough. People and Planet are suffering.

Who Are We?

  • 7th Generation Advisors is an NGO aligning proven policies with technology and finance for sub-national governments globally. Our role is to source new projects; ensure compliance with environmental and social objectives, including UN SDGs; establish and manage the Advisory Committee that will assist the partners in project development and due diligence.
  • Pegasus Capital is a unique US GCF Certified Impact Fund Manager.
  • R20: Regions of Climate Action is an International not-for-profit organization to accelerate the implementation of sustainable low- carbon climate-resilient infrastructure, in support of the Paris Climate Agreement and the SDGs.
  • Gold Standard is a unique international NGO specializing in SDG and CC certification.

Past Projects:

Brazil (2016): LED Street Lighting Program

LED Streetlight Project in Brazil

• Working with over 40 cities
• Pilot project with 150 LED Streetlights per city.

Algeria (2017): Zero Waste Program

• Sorting Center (salvaging 40 t/ month)
• Composting Center (producing 7 t /month

Fiji (2018): Off-grid solar system

• Community based off-grid solar system through a revolving Fund.

Mali (2019): 50 MW Solar PV

• Breaking ground in 2018.

•Largest in Western Africa to date.

Building a project pipeline (2016 for COP 21 & 2019 for COP 25): 500 infrastructure projects

  • Campaign 1: In 2016, for COP 21, “The 100 Climate Solutions Project Campaign”, created with the support from the Leonardo DiCaprio Foundation; launch a first “call to projects” and identified 650+ potential projects (450 selected after 1st screening).
  • Campaign 2: In 2019, for COP 25, a second “call to projects” for Latin America was launched, in partnership with CC35.
  • Project Types: Waste Management, Water and Sanitation, Renewable Energy, Sustainable Agriculture, LED Street Lighting…
  • Countries: 81 Countries

Our Financial Model

Building a dedicated Impact Blended Finance vehicle: The Sub national Climate Fund

  • Fund Manager: PEGASUS CAPITAL, US private entity accredited to Green Climate Fund (GCF)
  • Size of the Fund: 750 M$US with 150 M$US first loss public junior tranche with GCF and 200 M$US Private Senior tranche
  • Anchor Investor: R20 won a call for tender with GCF for 20 – 30% anchor investment at the junior tranche level
  • Portfolio of projects: Waste Management, Renewable Energy, Water and Sanitation, Sustainable Agriculture, LED Street Lighting
  • Foreseen Countries: Between 20 to 25 countries in ASAEN and India, Sub Saharan Africa, Mediterranean, LATAM, Caribbean, Indian Ocean

Our Approach

We are best described as a coalition project developer and act as a neutral broker, facilitating the identification, development, financing and implementation of a pipeline of sustainable mid-size (5 – 75 M$US) projects, and partnering with both Public and Private Investors through dedicated Impact Blended Finance vehicle such as the present Sub national Climate Fund.

  • Enabling the identification and the creation of portfolios of sustainable infrastructure projects at the sub-national level.
  • Scaling-up the supply of projects’ technical assistance, plus simplifying and accelerating their access to it,
  • Creating blended finance investment vehicles to make the most efficient use of technical assistance support and deliver the risk and returns required by public and private institutional investors.

The Sub National Climate Fund: SnCF Global

The SnCF Global is an umbrella fund for the deployment of sub national high social and environmental impacts. It leverages technical assistance and Blended Finance to accelerate the development and investment in a portfolio of bankable sustainable infrastructure projects. The SnCF is the first step to a larger initiative that aims to scale-up and replicate sustainable infrastructure funds globally.

Scope and Key Characteristics

  • A blended finance vehicle that associates the work of a neutral and not-for-profit project preparation team with an investment vehicle that delivers the risk and returns required by public and private institutional investors.
  • Will invest in a portfolio of waste optimization, clean water and sanitation, sustainable agriculture, renewable energy and energy efficient projects, scaling local contributions to national climate plans and Nationally Determined Contributions.
  • Will focus on developing and least developed countries.
  • Will be certified compatible with the SDGs, developing projects in- line with the Gold Standard for Global Goals (GS4GG), and reporting performance against project-specific impact criteria.

Strong Relationships

We have already established strong relationships with:

  • Both Public and Private Financial Institutions such as the Green Climate Fund, EIB, BNP Paribas, Benjamin de Rothschild, Bordier to ensure synergies and blended financing support
  • Political institutions such as the European Commission, the French, Fiji and Chilean Governments (One Planet Summit & COP 23 § 25), the Commonwealth of Nations, Union for the Mediterranean, The AfroChampions Initiative, CC 35 etc to ensure synergies and support.