Clime Capital launches SEACEF II, an innovative fund to boost low-carbon transition in Southeast Asia

Clime Capital has just raised MUSD USD 175 from philanthropic, public and private players to launch Southeast Asia Clean Energy Fund II (SEACEF II), an investment fund dedicated to the low-carbon transition in Southeast Asia.

Like SEACEF I, but with a fourfold increase in resources, SEACEF II will invest in the development stage of projects and companies with the potential to accelerate the decarbonization of the economy by boosting renewable energy production, energy efficiency, electric mobility and climate-friendly technological solutions, mainly in Vietnam, the Philippines and Indonesia.

This is a key issue for the region, since per capita CO2 emissions in the Association of Southeast Asian Nations (ASEAN) are set to rise by 139% between 2015 and 2040, due to strong population growth and emissions from industry, agriculture and the economy. By 2020, Indonesia will be ASEAN’s biggest emitter, with 563 million tons of CO2, followed by Vietnam in second position (355 Mt) and the Philippines in fifth (133 Mt).

The SEACEF II fund has already invested $35 million in 2024, through five investments in solar and electric mobility projects. It provides catalytic early-stage capital and bridges a financing gap in the market, while also establishing an international ESG-compliant ecosystem of project developers in Southeast Asia.

The Fund is backed by investors providing first-loss junior and senior tranches. Key investors include Allied Climate Partners, Australian Development Investments (an Australian Government initiative), the Global Energy Alliance for People and Planet (GEAPP), Impact Assets, British International Investment (BII) (the UK’s development finance institution), the Cisco Foundation, FMO (the Dutch entrepreneurial development bank), the International Finance Corporation (IFC) (a member of the World Bank Group), Norway’s Norfund, REI Co-op, Sweden’s Swedfund International, the Asian Development Bank and Proparco.

This unique association of public, private and philanthropic capital for the launch of a fund dedicated to the decarbonization of the economy in Southeast Asia, allows to take more risk, to invest amounts better tailored for early-stage companies, and to provide more patient, tolerant and flexible guidance, to mobilize other private capital in due course, as the risk is reduced.

Mason Wallick, Chief Executive Officer and co-founder of Clime Capital, said, “As time passes without sufficient progress in developing the critical resources to reduce carbon emissions, the planet needs more businesses focused on accelerating the low carbon transition to thrive. Clime Capital has proven that our unique combination of early-stage investment ability and clean-energy expertise applied through dedicated on-the-ground teams in Southeast Asia can make a real difference.”

Françoise Lombard, Proparco’s CEO, said: “We are proud to support SEACEF II and contribute to Southeast Asia’s clean energy transition alongside our trusted partner, Clime Capital. This fund will play a pivotal role in the region by providing early-stage capital to innovative low-carbon businesses across Vietnam, Indonesia, and the Philippines. SEACEF II combines public, private and philanthropic capital that will be deployed through high-impact projects accelerating the net-zero transition—a goal that is central to our strategy and vital to our shared future.”

Proparco’s investment in SEACEF II will help maintain or create 2,020 jobs. This project, which is 100% aligned with the Paris Agreement and generates 90% climate co-benefits, will also help avoid 27 tCO2 per year. It is also eligible for the 2 X Challenge, a strong commitment to gender equality.

Furthermore, SEACEF II will be synonymous with strong value creation for the companies involved, supported by technical assistance facilities before and after the investment, notably to improve environmental and social standards.