What is a climate impact fund?
Climate impact funds bring together companies, governments and philanthropies to finance climate action at scale. By pooling investments, investors co-finance projects and companies that generate a quantifiable, positive climate impact.
These funds, developed and managed by South Pole, are not for profit. Instead of financial returns, they generate environmental commodities – like carbon credits – alongside measurable environmental and social benefits.
Why climate impact funds?
Motivated by a range of factors—from the social and economic impacts of climate change on the most vulnerable to its material risks to business—investors in the private, public and not-for-profit sectors are looking for ways to advance global sustainability and climate goals, and build resilience.
Achieving such goals will require dedicated investments with measurable, positive impact. That's where climate impact funds come in.
To address common barriers to climate finance, such as gaps in carbon pricing policy or inadequate risk perception, South Pole structures and manages impact funds that identify, advise and invest in high potential projects and businesses.
By investing in an impact fund, clients across the private, public and non-profit sectors can:
- Be at the forefront of climate action by supporting innovative, early-stage climate solutions
- Create impact at scale by using the power of environmental markets across carbon, energy and plastics, among others
- Achieve more impact per dollar of investment by revolving funds, as revenue is re-invested in new projects
- Mobilise additional investments with de-risking instruments, such as loan guarantees
- Over time, access carbon credits and other sustainability certificates with additional co-benefits that contribute to organisational sustainability goals
Which climate impact funds does South Pole offer?
South Pole works with clients across the private, public and non-profit sectors to develop, structure, implement and manage impact funds in the areas of Energy, Land & Water or Technology & Industry. Funds currently available for investment or under development include:
- Technology fund: Providing loan guarantees to climate-friendly SMEs
- Landscape Resilience Fund: Investing in projects and local businesses improving the climate change resilience of smallholder farmers and other vulnerable communities in the land-use sector
- Energy Access Fund: Investing in renewable energy projects with high social impact, such as for schools, hospitals and low-income households
- Plastic Action Fund: Providing upfront investment in projects that reduce plastic pollution and build circular economies
- Carbon Removal Fund: Investing in carbon removal technologies and companies that develop affordable and achievable solutions to reach global net zero goals
- Water Action Fund: Focusing on sustainable supply chains, including water efficiency and improved use of natural water infrastructure
- Bespoke Climate Impact Funds: South Pole works with clients to develop, structure, implement and manage new impact funds in the area of Energy, Land, Water, Technology & Industry
How it works: our five-step fund development process
In addition to developing and structuring impact funds, South Pole offers the following services:
- Financial management
- Due diligence of investment cases
- Technical and financial support for projects
- Monitoring investment impact
- Fundraising for co-investors
- Strategic communications
Your trusted partner
South Pole has advised a range of private and public entities on structuring impact funds that focus on social and environmental benefits. In addition to this track record in fund management, we have 14+ years' experience of working to support a sustainable economy:
- Managing more than USD700 million in capital, identified & developed 700+ projects, and mobilised USD10 billion in private investments.
- Over a decade of experience in climate finance, land use & energy
- Sound fund governance based on globally accepted standards
- Demonstrated climate impact with 80m tCO2 saved over the past 10 years by our climate action projects