DFC seeks to provide debt, equity, and technical assistance for early-stage enterprises and financial intermediaries, including funds, building solutions for climate adaptation
SHARM EL-SHEIKH, Egypt – Today at the COP27 event PREPAREing for Change: A Whole-of-Government Approach to Global Food and Water Security, U.S. International Development Finance Corporation (DFC) announced it is standing up a major push to accelerate climate adaptation investment. To address the gap in funding for climate adaptation, DFC is accepting climate adaptation business proposals for financing in support of resilience in developing countries, with an emphasis on four sectors: agriculture, water, built environment, and health. The estimated costs for developing economies to adapt to the effects of climate change are expected to reach nearly $300 billion annually by 2030 and $500 billion by 2050.
With this push, DFC seeks to invest in—and mobilize additional private sector capital for—small and medium enterprises (SMEs) with innovative solutions to address climate adaptation challenges. DFC committed more than $390 million in FY 2022 for projects that support PREPARE, a key focus of the Biden-Harris Administration’s international climate finance plan for developing countries, and an additional $200 million in deals that will generate adaptation co-benefits.
“Small businesses are the lifeblood of any economy—they generate millions of jobs, support communities, and empower people. At the same time, they have fewer resources to deal with extreme heat, flooding, drought, and other climate impacts we are increasingly seeing around the world.” said DFC CEO Scott Nathan. “That’s why we’re focused on supporting small businesses as they adapt to meet this challenge. DFC committed more than $390 million for climate adaptation projects during the last fiscal year. We want to expand our work and help those most impacted by acting as a catalyst for private investment in developing countries.”
The adaptation finance gap will continue to widen unless public and private sector actors work together to invest more in equipping vulnerable communities with the tools and capabilities to adapt to and mitigate the impacts of climate change.
To qualify as an adaptation SME, interested businesses’ technology, product or service must (1) enable a user to identify, evaluate, manage, or monitor physical risks and impacts, preventing and reducing climate risk or adverse impacts, and/or (2) be measurable and define contribution to adaptation outcomes, and (3) be currently offered or able to be offered in developing countries.
Interested businesses should email adaptation@dfc.gov for more information. While applications will be evaluated on a rolling basis, they will be reviewed in the order by which they are received. Please see www.dfc.gov/climate for more information.
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U.S. International Development Finance Corporation (DFC) partners with the private sector to finance solutions to the most critical challenges facing the developing world today. We invest across sectors including energy, healthcare, critical infrastructure, and technology. DFC also provides financing for small businesses and women entrepreneurs in order to create jobs in emerging markets. DFC investments adhere to high standards and respect the environment, human rights, and worker rights.