Toronto, 5 July, 2024 — Convergence awarded a proof-of-concept grant to climate and impact fund manager, Camco, to design the Transforming Island Development Through Electrification and Sustainability (TIDES) Fund. The fund, envisioned as a USD 100 million blended finance structure, is designed to support the development of renewable energy projects across the Pacific Islands, promoting sustainable development and gender equity. This grant is awarded through Convergence’s Gender-Responsive Climate Finance Design Funding Window, funded by Global Affairs Canada.
Due to their geographic isolation and reliance on imported fuels, the Pacific Islands are uniquely vulnerable to energy security challenges and climate change. The TIDES Fund aims to tackle these issues by financing renewable energy projects in the region, focusing on six target islands: Cook Islands, Fiji, Samoa, Solomon Islands, Tonga, and Vanuatu. The innovative blended finance fund aims to catalyze private capital at scale to support a portfolio of commercial and industrial, utility-scale, and off-grid projects.
Convergence previously provided Camco with a feasibility stage grant to identify the initial pipeline, engage with potential investors, and develop the initial legal and financial structure of the fund. Camco has successfully moved past the feasibility stage and will use this new grant to prepare for the launch of this blended debt and equity fund. Camco will also provide technical assistance and capacity building support to local development partners and stakeholders through their Market Development Facility.
The TIDES Fund has integrated gender equity into the core of its investment strategy and a central goal of the fund is to empower local communities, particularly women. Through a comprehensive gender action plan that ensures substantial participation of women throughout the investment process, the fund aims to enhance women's livelihoods by increasing access to electricity, clean energy solutions, and economic opportunities, thereby driving transformative change at the community level.
“We are hugely grateful to Convergence for awarding us this latest grant, which will enable us to reach financial close and launch TIDES,” said Paul Makumbe, Regional Director - Pacific, Camco, “TIDES represents a significant step towards addressing energy security and climate resilience in the Pacific Islands. By integrating gender equity into our investment strategy, we aim not only to provide sustainable energy solutions but also to empower women and girls, fostering economic opportunities and community resilience. Our commitment is to ensure that renewable energy projects benefit all members of the community, creating a lasting positive impact.”
The TIDES Fund will leverage Camco’s significant experience in fund management and its existing partnerships with local developers to efficiently originate and manage multiple projects. The fund aims to support 83 megawatts of renewable energy generation capacity in the Pacific, providing first-time energy access to over 50,000 people, including 35,000 women and girls.
“The TIDES Fund, by pooling multiple small opportunities, will attract investment at scale into energy security and women empowerment in the Pacific Islands,” says Convergence CEO, Joan Larrea. “We are excited to continue our support of Camco’s work as they advance the region’s clean energy transition and build regional resilience.”
About Camco Management Limited
Camco is a specialist climate and impact fund manager, leading the transition to a prosperous net zero future in emerging markets. The company is an Accredited Entity of the Green Climate Fund and is authorized and regulated by the UK Financial Conduct Authority. Camco has offices in Auckland, Helsinki, Johannesburg, London, and Nairobi. Visit camco.fm to learn more.
About Convergence’s Design Funding Program
Convergence’s Design Funding program operates as a market acceleration tool providing early-stage capital to support blended finance solutions in frontier markets and nascent sectors to accelerate the number of investible transactions in market targeting SDGs. The Gender-Responsive Climate Finance Window, funded by the Government of Canada, provides grant funding for the design and launch of innovative blended finance solutions focused on the intersection of climate change and gender equality in emerging markets globally. Visit Convergence’s Design Funding page for information on submission deadlines as well as other open windows.
About Convergence
Convergence is the global network for blended finance. We exist to increase private investment in emerging markets and developing economies to advance the UN Sustainable Development Goals and Paris Agreement.
Our members include private investors looking to diversify their portfolios, businesses seeking capital, as well as public agencies and philanthropic foundations looking to make their funds go further.
Learn more about Convergence: www.convergence.finance
Media Contact
Karolyn Xie
Head of Communications (interim)
Convergence
[email protected]
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