Finance solutions for climate action, natural capital, and the energy transition
A transition to a green economy requires significant financial resources and sound investment solutions, especially in emerging markets.
According to the United Nations, “Financial resources and sound investments are needed to address climate change.” The World Bank estimates it will require around USD 90 trillion by 2030 to enable the transition to a green economy.
Emerging markets being particularly vulnerable, have an especially pressing need for green finance to adapt to the effects of climate change and implement environmentally responsible practices. Five of the impact funds we manage and advise focus on unleashing sustainable finance to support green energy, protect natural capital, and combat and adapt to climate change.
PARTICIPATE IN THE TRANSITION TO A GREEN ECONOMY
Our funds in this sector
GEL equivalent of USD 20 million loan facility to Bank of Georgia
GGF extended a USD 20 million facility to Bank of Georgia in 2021. The loan was issued in Georgian lari. Exchange risk is covered by L shares, a mechanism which removes exposure to FX risks for partner institutions, which has been funded by the EU and the German Federal Ministry for Economic Cooperation and Development. The Bank will on-lend the proceeds to corporate and small and medium clients to advance green investments in construction, manufacturing, food processing as well as hospitality sectors.
USD 40 million senior loan to Unifin in partnership with Calvert
eco.business Fund extended a USD 40 million loan to Unifin, a Mexican non-bank financial institution, in 2021. This investment was made in partnership with Calvert Impact Capital, which extended a senior loan of USD 5 million. The funding is helping finance sustainable crop production under protected agriculture, water harvesting and treatment systems, among others, and is supporting the development of Unifin's sustainability strategy.
Forestal Apepú is a timber production business, partially owned by Arbaro since 2019, located in the San Pedro region in Paraguay. The company acquired land previously used for agricultural purposes and now produces high quality timber for local sawn wood and plywood markets. On a quarter of the company’s land, there is natural forest which is under protection to ensure regeneration. Remaining pastureland is leased to local cattle farmers.
USD 20 million senior loan to Banco Davivienda
In 2020, eco.business Fund extended a USD 20 million senior loan to Banco Davivienda in Costa Rica. The investment aims to promote the use of responsible environmental practices within Costa Rica’s main productive segment, the agribusiness sector.
Forestal San Pedro
Forestal San Pedro is a timber production business, located in the San Pedro region in Paraguay, established and fully owned by Arbaro since 2021. Forestal San Pedro produces high quality timber for local sawn wood and plywood markets, mainly under silvopastoral production schemes. The company leases land from local landowners who predominantly used it for extensive cattle grazing. The net production area is expected to grow to from 5,700 ha to 7,500 ha.
North Macedonian 36MW wind farm
GGF is a minority shareholder in this wind farm project, based in the village of Bogoslovec. The wind farm is currently under construction, with completion expected in 2023. Once complete, the Bogoslovec wind farm will double North Macedonia’s existing wind energy generation capacity, playing an important part in the country’s transition to a diversified renewable energy mix. The project is expected to generate enough green electricity to supply over 20,000 households, resulting in 80,000 tons of avoided CO2 emissions annually.
It’s critical that we move more capital, more quickly to address our shared social and environmental challenges; Finance in Motion advised funds allow us to support innovative financing solutions that address climate change [and micro- and small-business financing gaps] and to do so efficiently and effectively.Catherine Godschalk
VP Investments, Calvert Impact Capital
For already 60 years, our mission as a sustainable Dutch bank has been to foster environmental and social sustainability. Our investment in funds advised by Finance in Motion gives us the opportunity to drive this ambition and have a global impact.Ronald Zeeman
Senior Account Manager Sustainable Project Finance, ASN Bank
We have invested in funds advised by Finance in Motion because they are aligned with our commitment to 100% sustainable investment. Finance in Motion teams are experts in high-impact topics such as sustainable forestry, alternative energy, and business financing with a climate aspect.Johannes Puhr
Member of the Board & Head of Asset Management, Fair Finance
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Recent news and stories
The Arbaro Fund for Both People and Planet
Despite a slowdown in global deforestation since 1990, the world’s forests are nevertheless still disappearing at alarming rates. The Arbaro Fund aims to combat these developments by investing in sustainable forestry in Latin America and sub-Saharan Africa – regions that are home to more than two-thirds of the deforestation hotspots identified by the World Wildlife Federation.