Farmland in the Philippines. Biodiversity in Madagascar. Climate insurance in Brazil. The Global Innovation Lab for Climate Finance selected for its new cohort eight financing mechanisms for climate adaptation and resilience in emerging markets.
Adaptation Asia and Planetary X’s Panra Fund in the Philippines, for example, is looking to raise $50 million to provide revenue-based financing and technical assistance for climate-smart agriculture.
In Madagascar, Miarakap and Kinomé are co-managing the Mitsiry Biodiversity and Climate Fund, a blended-finance fund for companies working to restore natural ecosystems and farmland.
StoneCo and global insurance giant Zurich are working to provide climate insurance for Brazilian small businesses to help them access credit. Some of the teams in the Lab’s cohort will be eligible for pre-seed capital after a seven-month design and testing process.
Grounded in reality
The Lab has supported the launch of 87 climate instruments since 2014; those vehicles have collectively mobilized nearly $4.4 billion. Notable alumni include Climate Fund Managers, which recently closed its second fund at more than $1 billion for climate adaptation infrastructure in emerging markets.
The blended finance Climate Resilience and Adaptation Finance and Technology Transfer Facility, or CRAFT, raised $186 million for companies supporting climate adaptation. Brazil-based Vox Capital incubated its land-use transition credit fund.
Recognizing a more difficult climate fundraising environment, the Lab’s Ben Broché called this year’s concepts “ambitious, but also grounded in the realities of raising and deploying capital in emerging markets.”