OUR APPROACH
35% of Southeast Asia’s GDP is at risk from climate change by 2050
Yet finance for climate adaptation accounts for only 12% (USD 3.4bn) of annual climate finance flows to the region. This shortfall in financing drives greater losses and damages, disproportionately affecting vulnerable communities.
LOCALLY LED
Agrifood systems are the world’s biggest employer, providing livelihoods to over a billion people. Yet, their underpinning ecosystems are deeply tied to local contexts, making a one-size-fits-all investment approach untenable.
Using our established networks across Southeast Asia, we identify impactful business opportunities with talented teams, and then partner closely to help them achieve long-term, sustainable growth, financial returns, and positive impact.
We work closely with experts in impact investment, agronomy and climate science across the region in order to deliver tangible adaptation and resilience outcomes.
TECHNOLOGY DRIVEN
Flows of climate adaptation finance are hampered by the lack of verifiable data, specifically with regards to climate resilience outcomes.
Working with a leading climate-fintech, we are partnering to embed ecosystem resilience assets (ERAs) into the investment diligence, monitoring, and revenue model of our agribusiness investment portfolio; creating both a measurable adaptation framework and a new income stream for investees and farmers. The ERAs that are purchased are instantly retired (no secondary market) and each year the funds from the sale of the assets are distributed to the stewards of the ecosystems (farmers, communities).
FLEXIBLE INVESTING
Blended finance is the use of catalytic capital from public or philanthropic sources to increase private sector investment in sustainable development. Adaptation Ventures will use concessional and flexible finance structures to deliver tailored solutions for Southeast Asian agribusinesses.
This will take the form of catalytic donor subsidy, guarantees and targeted technical assistance facilities at the fund structure level drive change. And, revenue-based finance and convertible debt instruments at the product level. This provides flexible finance for agribusinesses involved in the supply of agricultural inputs, agricultural production, transformation of agricultural products, and their distribution to consumers