The Bloomberg Philanthropies and Goldman Sachs-backed Climate Innovation and Development Fund have completed its first set of blended-finance investments focused on innovation across the sustainable transport sector in each of India and Vietnam.
David Solomon, Chairman and CEO of Goldman Sachs, said, “Creative solutions like blended-finance facilities can mobilize the capital needed to advance sustainability. By encouraging more private capital to support projects like these, the Climate Innovation and Development Fund will accelerate the decarbonization of mass transportation in India and Southeast Asia and make further progress in the journey of climate transition.”
These initial investments are the first realization of the Fund’s potential to unlock up to $500 million in the private sector and governmental investments supporting sustainable low-carbon economic development with a focus on South and Southeast Asia.
“Switching to clean power and electric transportation can bring enormous benefits to developing countries but up-front costs often stand in the way,” said Michael R. Bloomberg, founder of Bloomberg LP and Bloomberg Philanthropies. “This initiative brings people together to unlock capital and jump-start more projects that will cut emissions, improve public health, spur economic growth, and create jobs. We’re looking forward to working with partners at the Asian Development Bank and Goldman Sachs on these initial projects in India and Vietnam.”
In India, the Fund’s investment will mobilize approximately 14 times its investment capital to support the purchase of 255 electric buses to replace existing diesel buses operating on 56 high traffic intercity routes across cities, including Delhi and Pune, and the states of Andhra Pradesh, Karnataka, Tamil Nadu, and Telangana. The e-buses are expected to serve five million people per year and the Fund will support the construction of charging infrastructure including solar-plus-battery solutions at the bus depots to maximize potential emission reductions.
“Mobilizing capital at scale is critical in the battle against climate change, especially in Asia and the Pacific where this global fight will be won or lost,” said ADB President Masatsugu Asakawa. “By supporting important new initiatives such as the Climate Innovation and Development Fund, partners like Bloomberg Philanthropies and Goldman Sachs can help marshal the private sector finance needed for transformative projects that can put the region on a path to low carbon economic growth.”