Climate change
29 April 2024
GCF is the world’s largest climate fund, mandated to support developing countries raise and realise the ambition of their Nationally Determined Contributions (NDC) towards low-emissions, climate-resilient pathways1 .
As a partner of GCF, through Macquarie entity Macquarie Alternative Assets Management Limited (MAAML), we are able to propose climate projects with potential to access the Fund’s financial reserves2 .
Macquarie has developed a new blended finance platform with GCF, to drive the adoption of electric vehicles (EVs) across India. The platform was officially launched in April 2024 and will be known as “Vertelo”.
Transportation contributes 13 per cent of India’s total CO2 emissions, the third-highest emitting sector, with emissions forecast to increase.3 This program aims to reduce the country’s CO2 emissions and improve urban air quality.
The platform aims to deliver $US1.5 billion to the e-mobility sector over the proposed investment term of 10 years and is expected to deliver a potential lifetime reduction of ~9.5 MtCO2e of greenhouse gas emissions.4
GCF has approved a commitment for up to $US200 million of junior equity to establish the first-of-its-kind EV focused leasing and financing company in India.
The blended finance structure is designed to crowd-in private sector capital, leveraging GCF’s commitment to provide a risk-mitigating buffer to commercial investors.
Macquarie aims to raise a further $US205 million from institutional investors to capitalise the platform and, over time, the platform hopes to mobilise a total of ~$US1.5 billion of capital (including debt finance).
Read how Macquarie has developed a new blended finance platform, with GCF, to drive the adoption of electric vehicles across India.
If you have any queries or funding proposals, please contact us.
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