Songdo, Incheon, Republic of Korea, July 18, 2024 – The GCF Board approved funding of US$221 million for the “Collaborative R&DB Programme for Promoting the Innovation of Climate Technopreneurship (FP240)” at the 39th GCF Board Meeting held in Songdo, Incheon, a result achieved by collaborative efforts of public and private entities including the Korea Development Bank (KDB) and GGGI.

The program aims to nurture local companies with climate solutions in five Southeast Asian countries – Cambodia, Lao PDR, Indonesia, the Philippines, and Vietnam – and to support the establishment of joint ventures with global climate tech companies, and facilitate technology transfer and investment, ultimately contributing to the development of climate tech industries in developing countries. This will be enabled by designing an effective framework for incubation and acceleration platforms and establishing a USD 200 million Climate Technopreneurship Fund, co-financed by the GCF and private investors.

“The program aligns well with the priorities in GCF Updated Strategic Plan as it supports early-stage ventures for innovation in climate technology and it also responds to UNFCCC and COP’s guideline for supporting climate technology incubation and acceleration,” remarked Kavita Sinha, Private Sector Facility Director of the GCF to the Board, while introducing the program.

The GGGI, as a strategic partner of the KDB, GCF Accredited Entity, has been collaborating with other partners throughout the project development process and leading stakeholder engagement in beneficiary countries. GGGI is expected to play a pivotal role as one of the executing entities of the Program, in country-driven acceleration readiness support and technical assistance for ecosystem building in partnership with local entities.

“This project marks the first of its kind climate technology transfer fund in Asia, which will contribute to growing climate technology and climate finance demands of GGGI beneficiary countries in the project. The strong collaborations between trustworthy partner organizations will drive great influence in the Southeast Asia region” added Achala Abeysinghe, GGGI Regional Director of Asia.

The program is set to make a significant impact by establishing a dedicated investment fund, which will invest in more than 40 innovative climate technology companies in the region, complemented by technical assistance for climate business acceleration and strengthening the ecosystem. The program anticipates a reduction of 1.6 million tons of GHG emissions and a positive influence on 2.3 million direct and indirect beneficiaries.

About KDB

The Korea Development Bank (KDB), is a national entity that was founded with the purpose of supplying and managing major industrial capital to help develop the economy of the Republic of Korea. Since its establishment, KDB has been providing financing for the development and promotion of industries, the expansion of social infrastructure development of countries, including that of the Republic of Korea, the stabilization of financial markets and the facilitation of sustainable growth. KDB has placed climate change and socially responsible investment as policy issues addressed in its annual planning.