E Co. bites | Series 4
Welcome to our 4th series of E Co. bites! We share short and easily digestible climate finance explainers, technical lessons, and more about us, our work, and how you can support our mission.
In this E Co. bite, our Managing Director Rowan explores how E Co. mobilises private climate finance by designing programmes that blend impact with return, such as using Green Climate Fund concessional finance to unlock investment in emerging markets.
Watch the full video to hear how smart financial structuring and technical know-how can drive both environmental impact and investor confidence.
TRANSCRIPT
While traditional investing typically prioritises financial return, investing in our world, to attract climate finance, intentionally seeks measurable social and environmental impact alongside those financial returns. This nuanced approach requires specialised expertise to navigate the complexities of generating positive change while achieving financial goals. E Co.’s technical know-how in mobilising climate finance from private sources encompasses several key areas.
We specialise in designing climate programmes and funds with the private sector that bring in concessional finance from public sources such as the Green Climate Fund or the Global Environmental Facility. Having worked with these global climate funds for many years, we enable institutional investors, asset managers and impact investors to access GCF funds that deliver multiple benefits.
Firstly, concessional finance provided by the GCF reduces the cost of capital for climate projects, making investments in emerging markets and developing economies more attractive to private investors. By accepting lower returns, the GCF funding helps yield a higher rate of return for private capital, enabling a larger number of climate investment opportunities to become financially attractive, thus unlocking additional private capital.
Secondly, in private equity projects that E Co. supports, the GCF can act as a first loss taker, enhancing the potential risk-return profile of investments and making them more appealing to private equity players who might otherwise avoid high-risk markets. A first-loss mechanism builds investor confidence by shielding private equity capital from adverse outcomes in the early stages of project performance and piloting new and innovative climate technologies. This protection encourages private investors to enter unfamiliar markets, catalysing additional investment flows and market transformation.
Lastly, we support private investors in investment portfolio construction and design of investment guidelines and criteria, strategically balancing impact and financial goals. For example, we design investment portfolios spanning early-stage climate adaptation technologies (such as early warning systems, climate-resilient infrastructure, climate-smart agriculture and ecosystem-based adaptation solutions) through to mature mitigation projects (such as solar, wind and hybrid energy or battery energy storage systems). This approach helps manage risk while maximising both environmental impact and financial returns through strategic asset allocation across different climate solutions, geographies, and investment stages.
About E Co.
We are E Co. We are a diverse and global team driven to build a sustainable future. For over 25 years, we’ve been supporting and guiding our clients to achieve low-carbon, climate-resilient development. We specialise in helping our clients lay foundations for transformative change, ensuring climate finance achieves its greatest impact.
We’ve mobilised over USD 5.9 billion from major climate funds with a 100% project approval rate. We work with global funds, UN agencies, national governments, development agencies, development finance, not for profits, businesses and investors. Clients include UNDP, IUCN, EBRD, FCDO, The World Bank, GCF, NEFCO, IIED, The Lightsmith Group.
We’ve worked on over 540 assignments in over 180 countries. Our clients span the public and private sectors, from international agencies and NGOs to governments, financial institutions, and global funds. We partner with them to turn ambitious climate goals into concrete action and lasting impact.
Across 17 sectors and seven services, we offer end-to-end support, from assessing market opportunities and formulating impactful strategies to designing and evaluating transformative programmes and projects. We empower clients to access and manage climate funds, develop effective policies, and build capacity for long-term individual and institutional success.
With deep expertise in climate finance and systemic transformation, we bring a nuanced understanding of sectors, cultures, and contexts. We lower risk, increase predictability, and design for impact, ensuring your investments create lasting, positive change.
E Co. is your trusted partner in navigating the complexities of climate finance and sustainable development, and together, we will make an impact.