GCPF Expands Mandate to Include Climate Adaptation Finance

Zurich, 7th August 2025 – The Global Climate Partnership Fund (GCPF), a climate-focused blended finance fund managed by Swiss impact asset manager responsAbility, is adding to its primary objective of climate mitigation by including a dedicated adaptation finance component. This additional focus aims to support partner financial institutions (FIs) in developing countries in addressing the increasing impacts of climate change. According to the United Nations Environment Programme (UNEP)¹, developing countries require around USD 387 billion annually to meet their adaptation priorities – nearly 20 times the current funding levels. responsAbility’s new focus is designed to help close this critical gap.

Since 2009, GCPF has financed renewable energy and energy efficiency projects that achieve more than 20% energy or CO₂ savings relative to a baseline scenario in which the financed intervention did not take place. While climate mitigation remains a global priority, concerns are growing that the world will not succeed in limiting global warming to 1.5–2.0°C above pre-industrial levels. This is exacerbating both acute and chronic climate risks, including more frequent flooding, wildfires, water scarcity, and extreme heat, particularly in countries that have contributed least to global emissions but are among the most vulnerable.

responsAbility is a pioneer in climate finance in emerging markets

With over a decade of experience in climate finance, responsAbility brings deep expertise and a strong track record to this new strategic focus. As a pioneer in the field since 2014, the company has successfully deployed climate mitigation capital through financial institutions in emerging markets—regions that are now most affected by the consequences of a changing climate. This positions responsAbility uniquely to address the growing need for climate adaptation in these countries, where the financing gap is widest and the potential for impact is greatest.

Scaling private sector action for adaptation finance

To close the gap in adaptation finance needs, both private sector mobilization and effective implementation are needed. GCPF will use its unique hands-on approach including in-house climate advisory support and external consultants financed through its technical assistance facility to build the capacity of FIs to manage climate risks and deploy capital for adaptation finance, providing a proof-of-concept that can be leveraged by other public and private sector investors.

Key elements of GCPF’s adaptation finance strategy

• Target partner institutions: The adaptation strategy will be rolled out to partner FIs in countries that are expected to face significant impacts from climate change. The GCPF team will support partners in developing a climate risk assessment and adaptation strategy at the institutional level, as well as implement adaptation initiatives for projects in target sectors in their loan portfolios.
• Target sectors: Adaptation investments will focus on construction, agriculture, and water treatment, based on both exposure to climate risks and commercial potential.
• Gradual rollout: Implementation will begin in four countries and expand over time, building on GCPF’s established partnerships with financial institutions in over 30 markets.

Strengthening climate resilience in emerging markets

By leveraging these partnerships, GCPF aims to facilitate greater uptake of adaptation finance in regions where resilience is urgently needed, complementing its continued mitigation efforts.

Carolin Gassner, Chair of the Board of Directors at GCPF, said: “I am delighted that the Fund’s Shareholders have recently approved the expansion of its scope to include adaptation finance, thereby giving GCPF the opportunity to play a pioneering role in this important area of intervention. The coming years will provide exciting opportunities for GCPF and its partners to contribute to systemic change by financing projects that enhance resilience.”

About GCPF

GCPF is a Luxembourg-based fund managed by the Swiss asset manager responsAbility Investments AG. The Fund is a public-private partnership with the primary objective of mitigating climate change through a reduction of greenhouse gas emissions in developing markets. Every mitigation project that GPCF finances needs to reduce energy use or GHG emissions by at least 20%. In addition to mitigation, GCPF recently expanded into adaptation finance, and aims to support financial institutions in developing markets to become more resilient to climate risks and to finance adaptation projects in key sectors.

GCPF was established by the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU), KfW Entwicklungsbank and the International Finance Corporation (IFC) in 2009. Junior catalytic capital is provided by Germany’s Federal Ministry for Economic Affairs and Energy (BMWK), the UK’s Department for Energy Security & Net Zero (DESNZ), and Denmark’s development cooperation (Danida). Other private and public investors include ASN Bank, Ärzteversorgung Westfalen-Lippe, FMO, OeEB, and EIB.

GCPF is classified as an Article 9 Fund under the European Sustainable Finance Disclosure Regulation (SFDR).

About responsAbility Investments AG

responsAbility Investments AG is a leading impact asset manager specializing in private market investments across three investment themes. These themes directly contribute to the United Nations Sustainable Development Goals (SDGs): Financial Inclusion, to finance the growth of Micro & SMEs; Climate Finance, to contribute to a net zero pathway; and Sustainable Food, to sustainably feed an ever-growing population. responsAbility also offers tailor-made and fund investment solutions to institutional investors. All responsAbility investment solutions target specific measurable impact alongside market returns.

Since its inception in 2003, responsAbility has deployed over USD 16.8 billion in impact investments. With over 280 employees collaborating across 6 offices, as of 30 June 2025 the company manages USD 5.5 billion in assets across approximately 300 portfolio companies in around 70 countries. Since 2022, responsAbility has been part of M&G plc, the international savings, and investments business, and contributes to enhancing M&G’s capabilities in impact investing.

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¹ United Nations Environment Programme: Adaptation Gap Report 2024