Global Subnational Climate Fund (SnCF Global) – Equity

"The SnCF Global project aims to:
• Mobilize private investment for mid-sized subnational climate projects
- Address the financing gap in subnational low-carbon and climate-resilient infrastructure.
- Leverage GCF’s anchor equity to attract private capital ($600–$750M), generating a total fund of $750–$900M.
• Support sustainable, climate-resilient development
- Promote projects that deliver both mitigation (reducing emissions) and adaptation (building resilience) benefits.
- Focus on sectors like renewable energy, energy efficiency, buildings, cities, forestry, land use, and NbS (Nature-based Solutions).
• Promote economic and social co-benefits at subnational levels
- Create local jobs, stimulate local economies, and improve access to sustainable infrastructure and services.
- Enable capacity building and knowledge transfer for regional actors in developing countries.
• Demonstrate a scalable and replicable investment model
- Use a “blind pool” equity fund approach to efficiently allocate capital across multiple projects.
- Serve as a proof of concept for similar funds in other geographies or technologies."

The SnCF Global project will first focus on the establishment of the Fund, which involves launching SnCF Global with a GCF equity anchor of $150 million and securing additional private commitments ranging from $600 to $750 million. To facilitate investments, Special Purpose Vehicles (SPVs) will be formed for each project. Alongside fund establishment, the project will develop a pipeline of bankable projects, targeting 45 mid-sized subnational climate projects valued between $5 and $75 million across up to 20 countries. The IUCN will provide Technical Assistance (TA) to ensure that each project meets climate, environmental, and social governance standards. The success of the Fund will rely on effective consortium coordination among Pegasus, responsible for fund management, R20 providing project advisory, Gold Standard overseeing impact certification, and IUCN implementing TA. Finally, all projects will undergo a rigorous investment screening and selection process, assessing financial viability, climate impact, and socio-environmental benefits to ensure that resources are used efficiently and achieve the greatest possible impact.

• Formal employment and improved livelihoods for women and vulnerable populations through $750 million in blended public/private capital in 30-50 subnational projects in 20-25 countries over 7 years.
• Empowerment of local communities, including women and girls in 20-25 countries over 7 years through $28 million invested in capacity building, resources and training to build more gender-inclusive, bankable, high-integrity sub-national projects with equitable distribution of benefits.
• Enhanced resilience and improved health for communities, including women and children, through certified climate mitigation impacts of 83 MT CO2e (SDG 13), and certified impacts verified by an independent 3rd party for at least two additional resilience / adaptation measures (SDGs 1,2,3,6,7,8,11,12), including those related to ecosystems and natural solutions (SDGs 14,15) over 7 years.
• Reductions in gender violence, increased gender equity, and time-saving, recreation, and economic activities for women and girls through the SnCF Environmental and Social Management System (ESMS), mandatory project safeguards, third-party certified gender-responsive project consultation framework (including expert consultation on including gender based violence safeguards throughout projects, particularly those engaging in high risk communities), and mandatory gender-responsive project design (SDG 5) in 30-50 subnational projects in 20-25 countries over 7 years.
• Strengthened institutional and regulatory frameworks through alignment of SnCF projects with national NDCs and prevailing gender policies.

• Successfully held an additional fundraising closing in 2023, with strong investor interest from Japan, the Middle East, sovereign wealth funds, U.S. corporations, banks, and foundations.
• Forged long-term partnerships to strengthen the pipeline of investable projects and raise the Fund’s global profile.
• Showcased climate solutions (e.g., hydrogen, seaweed, black soldier flies, ecotourism) during Climate Week New York 2023.
• Announced the Financing the Future of Food (F3) initiative ($200–$500M) with UAE MoCCAE and World Bank Treasury at COP28, with Pegasus testing the bond structure.
• Launched the Emerging Markets Catalytic (EMC) Investor Forum at COP28 to mobilize private capital for climate investments.
• Recognized by the Biden Administration PREPARE Call to Action, mobilizing $2B for climate resilience; Pegasus was the only private equity firm named alongside major tech companies.
• Advanced partnerships through the Forum for Farmers and Food Security to accelerate sustainable food security solutions.
• Signed an MOU with UNDP to unlock $1B in grants and investments by 2025 for food, water, clean energy, plastics, and waste in developing economies and SIDS.
• Invited as the only private sector entity to address ministers during a COP28 plenary on city-level climate solutions.
• Signed an MOU with UCLG Africa to roll out projects for water, waste, energy, and digital infrastructure in African cities.
• Capital deployment initiated with five projects:
- Cerro Verde Ecolodge (Galapagos – ecotourism, biodiversity, emissions reduction).
- Dominican Republic Solar (200 MW solar + battery storage).
- Ifria Cold Storage (cold chain logistics in North & West Africa).
- Luxun Solar (rooftop distributed solar in Mexico).
- Albania Solar (150 MW utility-scale solar for energy diversification).
• Luxun Solar achievements:
- Installed and produced 1,620 MWh of renewable energy.
- Reduced 755.765 metric tons of CO₂e emissions.
- Created 29 new direct jobs; total 37 FTEs by Dec 2023.
- 32% female workforce, 42% of senior management are women.
- Benefited 28,914 individuals (universities, commercial/industrial clients).
• Achieved SDG certification (first SDG-certified fund) under Gold Standard’s Impact Fund Requirements, with third-party audit and independent verification.
• Increased transparency with impact reports publicly available on the Gold Standard Impact Portfolio Registry.

Total financing USD 750,000,000m covering 42 Countries: Africa: Burkina Faso; Cameroon; Côte d’Ivoire; Democratic Republic of the Congo; Gabon; Guinea; Kenya; Mali; Mozambique; Nigeria; Rwanda; Senegal; South Africa; Togo; Uganda. Asia- Pacific: Cambodia; Fiji; Indonesia; Myanmar. Latin America and the Caribbean: Bahamas; Brazil; Chile; Costa Rica; Dominica; Dominican Republic; Ecuador; El Salvador; Guatemala; Haiti; Honduras, Jamaica; Mexico; Panama; Uruguay. Mediterranean: Albania; Jordan; Lebanon; Mauritania; Montenegro; Morocco; North Macedonia; Tunisia.

•    Solar Photovoltaic (PV) Power Plants
-    Dominican Republic: 200 MW utility-scale solar + battery storage.
-    Albania: 150 MW utility-scale solar for energy diversification.
•    Battery Storage Systems
-    Integrated with solar plants to support grid stability, enhance resilience, and reduce reliance on fossil fuels.
•    Distributed Rooftop Solar (Luxun Solar, Mexico)
-    Installation and operation of small-scale (500kW+) rooftop solar systems for commercial and industrial clients.
-    Provides clean energy alternatives to coal-based grid supply.
•    Green Cold Chain Logistics Technology (Ifria, Africa)
-    Temperature-controlled logistics platforms (warehouses, farm-level cold storage).
-    Reduces food waste, methane emissions, and transportation-related emissions.
-    Incorporates energy-efficient solutions (insulation, renewable energy, efficient operations).
•    Sustainable Ecotourism Infrastructure (Cerro Verde Ecolodge, Galapagos)
-    Low-impact accommodation and facilities.
-    Integrated energy, waste, and water management systems to halve emissions.
-    Gold LEED-certified design for sustainable construction and operations.
•    Innovative Financial Instruments (Technology in Climate Finance)
-    Financing the Future of Food (F3) Initiative: development of innovative bond structures supported by World Bank Treasury.
-    Designed to de-risk private investment and support transformation of food and agricultural systems.
•    Digital and Climate Solutions for Cities
-    Partnerships (UCLG Africa, UNDP, COP28 plenary) to scale digital infrastructure, water, waste, and energy solutions for urban resilience.

•    Technical Assistance (TA) by IUCN
-    Ensures projects meet climate, environmental, and social standards.
-    Builds the technical capacity of project developers at subnational levels.
•    Training and Skills Development
-    Ecotourism (Cerro Verde Ecolodge) and renewable energy (Luxun Solar) projects provide hands-on experience and operational know-how.
-    Community-based initiatives empower local stakeholders, especially women, in sustainable practices.
•    Partnerships with Local & Regional Actors
-    Engagement with subnational authorities (e.g., UCLG Africa, COP28 partnerships) transfers knowledge in climate-smart urban and rural solutions.
-    Promotes adoption of best practices in renewable energy, infrastructure, and food systems.
•    Investment & Project Management Capacity
-    Through the Subnational Climate Fund, fund management, screening, and monitoring processes build capacity in financial structuring, risk assessment, and sustainable investment practices.
•    Gender & Social Inclusion Integration
-    Capacity building in gender-responsive project design and stakeholder engagement, ensuring at least 40% women participation in consultations and 20% women in project teams.
•    Impact Measurement & Reporting Skills
-    Projects adopt Gold Standard Impact Fund Requirements, providing stakeholders with training in impact measurement, reporting, and verification.