responsAbility launches USD 500 million climate investment strategy for Asia

Zurich, 28. November 2023 - In response to rising CO₂ emissions in Asia, global impact pioneer responsAbility Investments AG ("responsAbility"), together with Germany's development bank KfW and the Dutch development bank FMO, has launched a USD 500 million climate investment strategy. The strategy aims to make an active contribution to CO₂ reduction in Asia through targeted investments in low-emission technologies and offers institutional investors attractive investment opportunities.   

Asia faces a double challenge: the continent is already the largest emitter of greenhouse gases, accounting for more than 50 percent of global CO2 emissions, and is facing a projected strong increase in energy demand by 2050. This underlines the urgent need to invest in climate-friendly technologies and infrastructure.  

Transparent and measurable impact on the climate

responsAbility's climate investment strategy focuses on sectors with high CO₂ savings potential in Asia, including renewable energy, battery energy storage, electric mobility, energy efficiency and circular economy. A key element of the strategy is the innovative "Climate Impact Assessment and Monitoring Framework", which ensures high transparency and targets direct CO₂ savings of an estimated 10 million tons over the entire lifetime of the investments. The climate investment strategy will have a positive impact on selected Sustainable Development Goals (SDGs), in particular climate action (SDG 13), industry, innovation and infrastructure (SDG 9) and responsible consumption and production (SDG 12).   

The blended finance strategy offers investment opportunities  

responsAbility's climate investment strategy uses a blended finance structure that combines public funding with private capital to support high-impact transformative projects. The aim is to mobilize USD 500 million and involve a significant amount of private capital. This blended finance approach will enable institutional investors to participate in solving Asia's climate challenges while achieving an attractive risk-adjusted return on their portfolios. 

Ewout van der Molen, Head of Climate Finance, responsAbility, says: "Our investment strategy appeals to institutional investors who are looking for both environmental impact and financial value from their investment. As a key step towards a low-carbon economy in Asia, responsAbility provides a significant opportunity for investors to make a tangible and measurable difference in the fight against climate change. The successful launch will enhance access to capital for Asian businesses that are keen to reduce their carbon footprint.” 

Stephanie Lindemann-Kohrs, Director of Global Equity and Funds, KfW, says: “KfW Development Bank, on behalf of the German Federal Ministry for Economic Cooperation and Development, strives to increasingly channel private sector capital into the SDGs. Through its blended finance structure and KfW’s investment into the first loss tranche, the climate investment strategy is ideally positioned to mobilize private funding at scale for investments that foster the energy transition and contribute to greenhouse gas abatement.”

Marnix Monsfort, Director Energy, FMO, says: “We are very pleased to participate in climate investment strategy as an anchor investor as we jointly accelerate the renewable energy transition in Asia. By providing energy solutions to various sub-sectors - commercial and industrial, energy efficiency, e-mobility, and battery energy storage - FMO endeavours to contribute and realize much-needed impact in climate action and attract much private capital in our energy transition journey.”