MUFG's GAIA Fund: Pioneering Climate Finance for Emerging Markets
MUFG and partners have launched the GAIA Climate Loan Fund, raising $600 million to support climate resilience in developing countries. Targeting $1.5 billion, the fund focuses on adaptation projects like sustainable agriculture and renewable energy, aiming to impact 19 million people and significantly reduce greenhouse emissions.
The GAIA Climate Loan Fund, co-founded by MUFG, has successfully raised an initial $600 million to facilitate climate resilience projects in developing nations. The announcement comes amidst the backdrop of the upcoming COP30 climate talks in Brazil, where leaders are urged to address a $300 billion finance gap outlined by the UN.
Aimed at bolstering adaptation projects amidst rising extreme weather events, the fund is set to support initiatives such as sustainable agriculture and water management. 'Adaptation Finance is gaining traction at recent COPs,' noted Ariane Pevide, MUFG's Director of Climate and Blended Finance, highlighting the role of private sector capital in adaptation strategies.
Collaborating with FinDev Canada and the Green Climate Fund, the GAIA Fund aspires to grow to $1.5 billion. In partnership with various institutional investors, the fund aims to invest in 19 countries, potentially impacting 19 million lives, creating over 11,000 jobs, and avoiding the release of 30 million tons of greenhouse gases annually.
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