GAIA – a climate and blended finance platform – announces that the Green Climate Fund (GCF), will provide up to US$150 million in equity to the project. Approval was received during the GCF's 37th Board meeting in Tbilisi, Georgia, which ran from 23-25 October, 2023.
The creation of the GAIA platform is led by MUFG, one of the world's leading financial groups, and FinDev Canada, Canada's bilateral development finance institution. Following the GCF's approval, MUFG and FinDev are now working towards implementation of the platform, which will constitute a US$1.485 billion Loan Fund focused in financing climate mitigation and adaptation project across the Global South.
GAIA will blend commercial and concessional capital, creating a model that can be scaled and replicated across markets. The result is the mobilisation of private sector finance at-scale to support the transition of the Global South to low-carbon and climate-resilient growth pathways.
GAIA will focus 70% of its portfolio in climate adaptation projects such as water access and usage; , sustainable agriculture, and nature-based approaches to the built environment.
Lori Kerr, CEO, FinDev Canada, said:
"The Green Climate Fund's participation in the GAIA platform is an important step in the implementation of this ambitious and innovative platform. We know that the mobilization of private investment is critical to make further progress towards the Sustainable Development Goals and Paris Agreement commitments.
The GCF's support reinforces this point, and in particular recognizes the strong climate adaptation elements woven into the GAIA platform. FinDev Canada is proud of its work in bringing this partnership to this next stage, and is committed to working with our excellent partners to advance and implement GAIA in 2024."
Fumitaka Nakahama, Global Head, Global Corporate & Investment Banking Business Group, MUFG, said:
"With the GCF's approval, we can now truly focus on implementing and driving forward this innovative platform. I believe GAIA has the potential to redefine the landscape of climate finance.
By addressing challenges and offering tailored solutions, GAIA is driving the transition towards a more sustainable and inclusive global economy."
Kavita Sinha, Director of Private Sector Facility, GCF said:
"GAIA is an example of how GCF supports innovative climate models that build scale in the deployment of climate finance for developing countries. Supporting efforts to mobilise capital for climate adaptation is a key priority for GCF."