A private investment facility for nature-based coastal climate resilience in the Least Developed Countries (LDCs)
Description
Earth Security is creating an innovative platform facility to enable private sector companies operating in LDCs and other developing countries to develop a business case for investing in nature-based solutions, identifying and funding local projects that deliver adaptation and resilience value to both businesses and local communities. Earth Security is working with Global Environment Facility and its accredited agency, the UN Industrial Development Organisation.
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It creates an innovative platform to mobilize finance from the private sector at scale, creating match-making between private sector investments and coastal nature-based projects in LDCs based on private sector business value drivers, such as resilient value chains and operations.
It increases the access of local projects in LDCs to a private sector audience, increasing the capacity to articulate and communicate their value proposition and technical assistance needs to a private sector audience, including by translating adaptation benefits into a business relevant metrics.
It creates the architecture to scale up a global pipeline of nature-based coastal adaptation projects across LDCs, as well as onboard companies across a range of industry sectors that can benefit from engaging, supporting and funding these projects.
It enables the creation of dynamic project portfolios for different types of funders and capital, including the ability of development finance institutions to provide catalytic blended finance to projects with the purpose of attracting private sector participation.
Local community-driven projects involved in nature-based adaptation in LDCs face significant technical, financial, capacity-building and regulatory barriers.
Early-stage funding that supports project developers in building capacity and moving through the early stages of feasibility and project development is highly catalytic to help de-risk and make projects investable.
Therefore, catalytic funds (either grant, concessional or funds with blended capital) could bridge the early-stage funding gap whilst reducing transaction and management costs for funders.
The project is currently working with project pilots across LDCs. Challenges such as information gathering and alignment with private sector investment criteria continue to be addressed through iterative engagements and capacity-building efforts.
Website: https://www.earthsecurity.org/mangroves
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