Global investments accelerating local action for a sustainable future

The Subnational Climate Finance initiative (SCF) is a global blended finance initiative that aims to invest in and scale mid-sized (5 – 75 M $USD) sub national infrastructure projects in the fields of sustainable energy, waste and sanitation, regenerative agriculture and nature-based solutions in developing countries.

The Subnational Climate Finance initiative (SCF) invests in mid-sized ($5-$75m USD) infrastructure projects, including sustainable energy, waste and sanitation, regenerative agriculture, and nature-based climate solutions. We partner primarily with subnational authorities to identify and implement these projects, financed with a blend of concessional and conventional capital, along with Technical Assistance grants that help mitigate risk and ensure financial and environmental goals are achieved.

Key components

SCF initiative consists of an investment fund of mid-sized infrastructure projects (SCF Fund) and a grant-funded dedicated to technical assistance facility (SCF Technical Assistance).

SCF Fund

The SCF Fund, managed by Pegasus Capital Advisors, will invest in a global portfolio of mid-sized infrastructure projects in the fields of sustainable energy, waste and sanitation, regenerative agriculture and nature-based solutions in developing countries. The Green Climate Fund (GCF) as an anchor investor and partner has already committed a first-loss tranche of up to USD 150 million, which is intended to mitigate risk at the fund level, thereby bridging the gap between public and private investors.
About SCF Fund
Scf Fund@2x

SCF Technical Assistance

The SCF Initiative features a dedicated, grant-funded facility ($28M) for Technical Assistance (TA) that provides technical support and grant funding to stakeholders in identifying and strengthening investment proposals for the Fund. In addition to financial performance, it supports implementers in ensuring the achievement of National Determined Contributions (NDCs), SDG impacts, and Nature Based Solutions (NbS). With the GCF's financial support, TA is managed by the International Union for Conservation of Nature (IUCN) and implemented together with Regions of Climate Action (R20) and Gold Standard.
About SCF Technical Assistance
Scf Technical Assistance@3x

Latest update

July 2022
Blended Finance to Catalyse Real Impact
6 to 8 September Quito
SCF Latin America and the Caribbean Regional Workshop: “Investing in sustainable subnational solutions for climate, nature, and people”
30.06.2022
Fighting Off Blended Finance “Bad Press” with New Transformative Financing Models
Join us at Building Bridges week in Geneva, Switzerland, Oct, 5