5.1.2023

GCPF raises additional USD 15m in Junior Shares

GCPF received a USD 15m investment in junior shares from BMWK – The German Federal Ministry for Economic Affairs and Climate Action, to finance projects that reduce carbon emissions in developing economies. With this investment, BMWK increased its commitment to roughly USD 95m.

Junior shares represent the ‘first loss tranche’ of GCPF; any losses experienced by the fund are deducted from the first loss tranche, effectively reducing the risk of investment for other investors. A higher junior-tranche volume allows the fund to grow in the future by increasing allowable volumes invested in other share classes as well as notes1, and makes the fund more attractive to risk-averse private investors. Mobilizing private capital to finance climate change mitigation is a key objective of the fund and essential in reaching global net zero targets by 20502.

The climate fund tackles the shortage of financing for low-carbon projects in developing economies, which otherwise would be difficult to finance because of their scale or the inherent risks associated with

the projects. The fund was set up as a public-private partnership in 2009, when climate change was still an emerging topic. The fund focuses on financing energy efficiency and renewable energy projects for Small and Mid-Sizes Enterprises (SMEs) and private households, primarily in cooperation with local financial institutions, but also directly. Through its Technical Assistance Facility, GCPF provides know-how and project support for partner institutions to develop and scale their green lending portfolios. The fund has been managed by responsAbility since 2014.

Although USD 15m may not seem like a large amount, junior capital is difficult to raise, and is a critical element of a blended finance fund like GCPF. The additional investment by BMWK in GCPF demonstrates the relevance of the fund in providing climate solutions in developing economies and is based on the fund’s convincing long-term track record.

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[1] Limits to investments in mezzanine and senior shares as well as notes are determined by so-called risk ratios that set limits to the ratios allowed between different tranches of the fund as well in notes.

[2] https://www.weforum.org/agenda/2022/02/how-private-capital-can-be-leveraged-to-fight-climate-change/#:~:text=Feb%208%2C%202022,to%20meet%20global%20decarbonization%20goals.

    Jul 2, 2025

    GCPF to Invest in KIS Group to Scale Waste-to-Energy Infrastructure in Southeast Asia

    As part of responsAbility’s broader climate investment strategy, the Global Climate Partnership Fund (GCPF) will invest USD 9 million in KIS Group, a Singapore-based company that provides sustainable clean technologies for the waste-to-energy and related sectors. This investment forms part of a total USD 23 million commitment from responsAbility-managed funds aimed at catalyzing sustainable development in emerging markets through innovative, climate-focused investments.

    Jun 6, 2025

    GCPF 2024 Impact Report now online

    The team at the Global Climate Partnership Fund (GCPF) is pleased to share the Fund’s bi-annual Impact Report, which provides insights into how the Fund creates impact, and the milestones that the Fund has achieved during the past years. From electric forklifts in Nigeria to digital banking in Uzbekistan, GCPF has continued to grow its footprint across 65 partner institutions in 35 countries worldwide as of the end of 2024.

    May 29, 2025

    GCPF India Insights Workshop

    From 5-7 May 2025, the Global Climate Partnership Fund (GCPF) hosted 10 non-banking financial corporations (NBFCs) from India to discuss relevant market trends for Climate Finance in the local market. The two-day workshop focussed on regulatory developments, practical ways to activate green lending and support the fast-growing Electric Vehicle (EV) and Solar Photovoltaic Technology (Solar PV) financing opportunities, and the role NBFCs can play in providing access to such products, particularly for Micro, Small, and Medium-sized Enterprises (MSMEs).