The Japan International Cooperation Agency has committed USD 20 million to the Subnational Climate Fund managed by Pegasus Capital Advisors under its Private Sector Investment Finance scheme. The investment, formalised in December 2025 and marked by a signing ceremony in April 2026, represents a significant step in mobilising capital for climate infrastructure in emerging markets. It also reflects growing institutional confidence in Pegasus Capital’s ability to structure and deploy blended finance solutions at scale.

Strengthening a Climate Infrastructure Investment Platform

The transaction represents JICA’s first private sector finance investment into a climate infrastructure fund and its first co-investment alongside the Green Climate Fund.

The fund focuses on climate infrastructure across Sub-Saharan Africa, North Africa and the Mediterranean, Latin America, and Southeast Asia and the Pacific. These regions present strong demand for infrastructure investment, yet continue to face barriers related to project preparation, risk allocation, and access to long-term capital. By anchoring the fund, JICA contributes to strengthening a platform designed to address these constraints—combining institutional capital with private sector execution capabilities.

Integrating Technical Assistance to Unlock Investment

A core component of the platform is the integration of a Technical Assistance Facility, managed by the International Union for Conservation of Nature and supported by partners including GCF and the Korea International Cooperation Agency.

The facility provides support for project development, capacity building, and monitoring, reporting, and verification (MRV). This integrated approach aims to improve project readiness and reduce risks that often prevent infrastructure investments from reaching financial close.

Experience across emerging markets shows that many climate infrastructure projects do not progress due to gaps in feasibility, governance, or environmental and social safeguards. Embedding technical assistance within the investment structure helps address these challenges at an early stage, enabling a more robust and investable pipeline.

This approach is consistent with the Subnational Climate Fund’s model, where targeted technical assistance is used to strengthen project fundamentals and unlock private capital .

Advancing Blended Finance in Practice

JICA’s participation highlights the increasing role of development finance institutions in deploying blended finance structures to mobilise private investment.

For Pegasus Capital, the investment reinforces its position as a platform capable of:

• Structuring investment opportunities in complex markets
• Aligning public and private capital
• Delivering diversified exposure to climate infrastructure

For investors, such platforms provide access to opportunities that combine development impact with risk-adjusted returns, supported by institutional partners and structured risk mitigation.

Enabling Scale through Partnership

As the climate finance landscape evolves, the focus is shifting from commitments to execution. Platforms that can originate, prepare, and finance projects in a coordinated manner are becoming essential.

The JICA investment signals continued momentum in this direction. By combining concessional capital, private investment expertise, and technical assistance, the Pegasus platform contributes to bridging the gap between climate ambition and bankable infrastructure.

About Japan International Cooperation Agency

JICA is Japan’s governmental agency responsible for delivering official development assistance. It supports sustainable economic and social development in developing countries through technical cooperation, concessional finance, and private sector investment finance. JICA plays a catalytic role in mobilising capital for infrastructure and climate-related investments.

About Pegasus Capital Advisors

Pegasus Capital Advisors is a global private markets investment firm focused on sustainability and climate-related investments. Through its climate infrastructure platform, Pegasus invests in projects and companies that contribute to decarbonisation, resource efficiency, and resilience, with a particular focus on emerging markets.

About the Subnational Climate Fund

The Subnational Climate Fund (SCF) is a global blended finance initiative that aims to invest in and scale mid-sized (5 – 75 M $USD) subnational infrastructure projects in the fields of sustainable energy, waste and sanitation, regenerative agriculture and nature-based solutions in developing countries. The SCF 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. The TA Facility is managed by the International Union for Conservation of Nature (IUCN) and implemented together with the Foundation R20 and Gold Standard. The Green Climate Fund committed up to $150 million to the Investment Fund for a junior tranche which is intended to further de-risk investment, and a further $18.5 million for the technical assistance facility.