Boost for the transformation in Asia: KfW supports mobilisation of private capital with the responsAbility Asia Climate Fund

• KfW makes EUR 58 million available
• Financing of climate protection technologies with high potential for CO2 reduction
• Rapid, comprehensive and effective measures for reducing greenhouse gas emissions

On behalf of the Federal Ministry for Economic Cooperation and Development (BMZ), KfW today signed a EUR 58 million financing agreement with the responsAbility Asia Climate Fund, for which responsAbility Investments AG will act as portfolio manager. The fund will primarily provide funding to small and medium-sized Asian companies – with a particular focus on India, Indonesia and Vietnam.

The aim is to finance companies which develop or offer highly climate-relevant projects, products or services. Providing proof of quantifiable CO2 reduction will play an important role. The focus here will be on the topics of renewable energy (e.g. projects for energy generation from solar, wind and biomass), energy efficiency (e.g. offering of intelligent, consumption-reducing heating, cooling or lighting systems) and electromobility, such as the production of electric vehicles, battery production and recycling, as well as charging infrastructure.

Christiane Laibach, Member of the Executive Board of KfW Group:

"To achieve the national climate contributions required by the UN Paris Agreement on climate change to meet climate targets, a large amount of investment in the transformation towards a carbon-reduced economy will be needed in many countries in South and Southeast Asia. Emissions in Asia have increased sharply over the past 20 years, which is why there is extraordinary potential for CO2-reduction measures there. To leverage this potential, private investment is essential in addition to public investment."

The responsAbility Asia Climate Fund is a structured fund which aims to achieve a volume of up to USD 500 million – partly by having a high proportion of private capital. KfW will invest in the fund’s first loss tranche as part of a fiduciary investment for the Federal Government, thereby reducing the risk for private investors in the senior tranche, who are expected to contribute more than USD 300 million. Fund financing will be available in both South and Southeast Asia.

Further information on KfW Development Bank is available at:
www.kfw-entwicklungsbank.de