Climate change: Non-banking financial company Clix Capital has signed a $20 million loan from Global Climate Partnership Fund (GCPF), a Luxembourg-based innovative impact investing fund managed by responsAbility Investments AG. The funding will be deployed for sustainable projects that help to mitigate climate change and fortify Clix Capital’s lending portfolio.
Speaking on the announcement, Rakesh Kaul, MD and CEO of Clix Capital said, “As climate change mitigation becomes a cross-policy agenda globally, our efforts are aligned to advance sustainable and green lending. As a responsible lender, we are committed to supporting India’s green journey via credit support and assisting businesses with CO2 reporting, green lending development, and environmental and social risk management initiatives.”
Clix Capital offers lending solutions including secured and unsecured MSME loans, healthcare equipment finance, mortgage finance, and K-12 school financing.
“Clix Capital provides much-needed credit support to India’s MSMEs in healthcare, education, and other sectors. Coupling Clix Capital’s expertise in providing credit to unbanked businesses with our mission to promote renewable energy and energy efficiency investments, we are poised to support a transformation in India’s sustainable development landscape” said David Diaz Formidoni, Head of Financial Institution Investments, Climate Finance at responsAbility.
GCPF is a public-private partnership fund that finances renewable energy and energy efficiency projects across several developing and emerging nations, both directly and indirectly. Since its inception in 2003, responsAbility has deployed over $13 billion in impact investments. As of March 1, 2023 the company manages $4.8 billion in assets across approximately 280 portfolio companies in 74 countries.
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According to Clix Capital’s statement, India currently needs $10 trillion in budget to become a net zero-emission nation by 2070. However, only one-fourth of its green finance requirements are being met currently. “This highlights the urgent need for a multi-fold increase in climate funding from various stakeholders. A competitive tax regime, cross-sector policy support, and progressive green guidelines are three key imperatives to drive green investments.”