The Fund’s impact thesis is to accelerate climate finance flows towards equal, accessible, and affordable solutions that build climate and societal resilience and facilitate climate mitigation within Agriculture and the Food Value Chain, Mobility, and Built Environment in Africa and LatAm.
The Fund’s mission and impact potential are primarily targeting innovative and scalable solutions that support underserved communities vulnerable to climate change and it will prioritize communities most in need, focusing on innovative businesses in agriculture, mobility and the built environment, including low-income households, women, and marginalized rural communities.
TAF Investment Strategy clearly articulates both results (e.g., individuals reached, assets made climate-resilient) and benefits (e.g., improved livelihoods, reduced vulnerability) for direct and indirect beneficiaries.
Fund-level KPIs (with expected targets) include:
- individuals supported to have more climate-resilient livelihoods (7 million);
- green jobs created and supported (600,000);
- total CO2e removed or avoided (6 million tons) and
- value and/or area of assets or land made climate-resilient (TBD)
TAF delivers adaptation and resilience while creating green jobs for direct beneficiaries—smallholder farmers, building occupants—and indirect beneficiaries—communities benefiting from improved food security, cleaner air, and employment.
The Fund is looking for support from Alliance members along with other investors in order to mobilize private capital. The fund is split into three tranches: the Catalytic or Junior tranche has a size of up to US$60 million. This tranche provides the first loss equity and is usually public donors and some DFIs. The Mezzanine tranche has a size of US$80 million and is usually subscribed by Development Finance Institutions. The Senior tranche has a size of US$60 million and is usually reserved for private/institutional investors, including local pension funds and insurances.
