New York, NY (November 29, 2023) – Today, Bloomberg Philanthropies and Goldman Sachs announced that the Climate Innovation and Development Fund (CIDF) has completed allocating its $25 million in philanthropic concessional capital to help advance sustainable low-carbon economic development in South and Southeast Asia. Launched in 2021 and managed by the Asian Development Bank, the CIDF unlocked approximately $500 million in private-sector and government investments in climate solutions to help accelerate the transition to net zero emissions.
To mark the completion of the final capital allocation Bloomberg Philanthropies, Goldman Sachs, and the Asian Development Bank have issued a report detailing the key learnings from the CIDF as a valuable case study in the power of blended finance. The report notes that the CIDF demonstrates how combined resources from private, public and philanthropic funding can be a powerful mechanism to help drive sustainable development in emerging markets – a sector of the global economy in need of significant capital to drive the energy transition. By analyzing the impacts of each investment, the report identified six key takeaways:
Michael R. Bloomberg, UN Secretary-General’s Special Envoy on Climate Ambition and Solutions and Founder of Bloomberg LP and Bloomberg Philanthropies, said, “The clean energy transition will not succeed without faster mobilization of private capital. Through this partnership with Goldman Sachs and the Asian Development bank, we’re demonstrating how targeted private financing – which is needed across the Global South – can cut emissions, improve public health, and spur economic growth.”
David Solomon, Chairman and CEO of Goldman Sachs, said, “With $25 million in seed capital, Goldman Sachs and our partners, Bloomberg Philanthropies and the Asian Development Bank, were able to mobilize approximately $500 million to help accelerate the clean-energy transition in emerging markets. This is clear evidence that blended-finance facilities can have a major impact and that the public and private sector must continue working together to support sustainable solutions at scale.”
Masatsugu Asakawa, President of the Asian Development Bank, said, “Asia and the Pacific faces a massive shortfall in climate investment and an urgent need to mobilize private capital at scale to respond to the growing impacts of climate change. Partnerships like the Climate Innovation and Development Fund are key to catalyzing climate action. In a short period, Bloomberg Philanthropies, Goldman Sachs, and the Asian Development Bank have successfully leveraged various financing mechanisms to take climate mitigation and adaptation action in several countries. As Asia and the Pacific’s climate bank, ADB is proud to support CIDF as it expands its contribution to global climate action.”
The CIDF was selected as one of the winners of Fast Company’s 2023 World Changing Ideas Awards for offering concessional finance to de-risk green projects for private investors. The Asian Development Bank, Bloomberg Philanthropies, and Goldman Sachs released a report detailing the fund’s projects and the challenges and opportunities faced, which can be accessed here.
Capital flows to climate projects fall short of global estimates of the investment needed to achieve net zero emissions. This is especially true in emerging markets and developing economies, where investment in clean energy technology and solutions is limited. The CIDF aimed to help begin to close this gap in South and Southeast Asia, where more climate finance investment is critical to achieve country climate targets.
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About Bloomberg Philanthropies:
Bloomberg Philanthropies invests in 700 cities and 150 countries around the world to ensure better, longer lives for the greatest number of people. The organization focuses on five key areas for creating lasting change: the Arts, Education, Environment, Government Innovation, and Public Health. Bloomberg Philanthropies encompasses all of Michael R. Bloomberg’s giving, including his foundation, corporate, and personal philanthropy as well as Bloomberg Associates, a pro bono consultancy that works in cities around the world. In 2022, Bloomberg Philanthropies distributed US$ 1.7 billion. For more information, please visit bloomberg.org, sign up for our newsletter, or follow us on Facebook, Instagram, YouTube, Twitter, and LinkedIn.
Media Contact: Marshall Cohen, +1-646-819-2611, mcohen@bloomberg.org
About Goldman Sachs and Goldman Sachs Gives:
The Goldman Sachs Group, Inc. is a leading global financial institution that delivers a broad range of financial services across investment banking, securities, investment management and consumer banking to a large and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.
Through Goldman Sachs Gives, a donor-advised fund, Goldman Sachs’ current and retired senior employees work together to recommend grants to qualifying nonprofit organizations to help them achieve their goals. Since 2010, Goldman Sachs Gives has granted more than $2bn to over 8,000 nonprofits in 100 countries globally.
Media Contact: Matthew Newton, +44 2077 744080, matthew.newton@gs.com
About the Asian Development Bank:
The Asian Development Bank is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.
Media Contact: John Larkin, +632 632 44 44, media@adb.org
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