Creating a Fund to Kickstart Climate Ready Technologies

In East Asia there are worsening natural disasters resulting from extreme weather events such as typhoons, heavy rainfall, and droughts, causing deteriorating quality and quantity of water supply; declining agricultural productivity; outbreaks of water-borne diseases; and reduced effectiveness of natural coastal defences, to name a few. However, less developed nations lack the technologies that exist elsewhere to effectively support national strategies in climate mitigation and adaptation due to nascent or non-existent markets for those technologies in their respective countries.

A client sought to establish a fund that would support the development of markets for climate ready technologies in several lesser developed East Asian Countries. We supported the client to develop this regional programme first by identifying the climate rationale in each of the countries where the fund would operate. This provided the justification for the technological intervention; however, it did not assess the relative markets for those technologies.

For the fund to have an impact it would need to provide financial support to technologies that would be considered additional to ongoing interventions including markets that could be considered mature. For that reason, we first identified technologies that could in theory be used to address climate impacts and mitigate emissions in those countries and then undertook a comprehensive additionality analysis on each of the technologies so that the fund could support truly additional technologies. We also developed methodologies to calculate the potential impact of the fund.  Using our adaptation and mitigation expertise and knowledge of climate financiers, we then supported the development of a proposal and feasibility documents to attract investment from major international climate funders to capitalize this proposed fund.

AvaTerra Global has a deep bench of expertise that can support the development of complex, multifaceted, multinational, regional climate finance programmes.  Contact us to explore how we can support you in these efforts.