- The GAIA platform, co-founded by FinDev Canada, MUFG, and GCF, targets up to 25 emerging markets with $1.48 billion for climate adaptation and mitigation projects.
- The initiative allocates 70% of funds for climate adaptation and 30% for mitigation, focusing on Least Developed Countries and Small Island Developing States.
- GAIA aims to bridge the climate finance gap through innovative public-private blended finance structures, aligning with the Paris Agreement.
$1.48 Billion GAIA Platform Launched to Address Climate Finance Gaps
At COP29, FinDev Canada, MUFG Bank, Green Climate Fund (GCF), and Climate Fund Managers signed a Memorandum of Understanding to launch GAIA, a $1.48 billion blended finance platform for climate projects in emerging markets. This initiative represents a major milestone in mobilizing climate finance for up to 25 countries across Latin America, Africa, and Asia.
Aiming for Impact in Vulnerable Regions
GAIA’s blended finance structure combines commercial, concessional, and grant capital to fund high-impact projects. The platform allocates 70% of its portfolio to climate adaptation and 30% to mitigation, focusing on critical areas like water and sanitation, renewable energy, low-carbon transport, and green buildings.
“GAIA symbolizes Canada’s leadership in climate and development finance – and accelerates the mobilization of much-needed investment in climate-vulnerable regions,” said Lori Kerr, CEO of FinDev Canada.
Related Article: World’s Top Development Banks Commit $120 Billion for Climate Finance by 2030: COP29
Global and Local Partnerships Drive the Platform
The platform benefits from the first allocation of Canada’s concessional finance facility, announced during the G7 in June 2024. It is managed by Climate Fund Managers and supported by Pollination, a global climate advisory firm. USAID is also a key partner.
“The Green Climate Fund is proud to be a first-loss investor in the GAIA platform. Together, we’re set to channel private adaptation finance to some of the world’s most climate-vulnerable regions,” said Mafalda Duarte, Executive Director, GCF.
A Response to Growing Needs
With an annual global financing gap of $5.5 trillion for achieving climate-related Sustainable Development Goals, GAIA demonstrates the power of public-private partnerships. It aligns with Canada’s $100 billion climate adaptation target through 2025, showcasing innovative solutions to mobilize capital for underserved regions.
“GAIA has the potential to redefine the landscape of climate finance and advance a more sustainable and inclusive global economy,” said Fumitaka Nakahama, Chief Executive, MUFG.
Bridging the Climate Finance Gap
GAIA’s design allows public capital to absorb initial project risks, unlocking commercial capital for climate adaptation and mitigation projects. “The platform will play a critical role in increasing access to climate finance for the world’s most vulnerable and least prepared states,” said Andrew Johnstone, CEO of Climate Fund Managers.
This initiative exemplifies the effectiveness of blended finance models in tackling climate challenges while supporting the world’s most vulnerable economies.
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