Leveraging climate finance for the most affected.
Scaling-up climate finance for the benefit of nature and vulnerable communities in Least Developed Countries and Pacific Small Island Developing States.
Challenge Existing Mindsets
Aggregation and De-Risking
Focus Groups 03
Women led Smallholders
TA Support 04
Development Climate Finance
Regional Focus 05
East Africa (2nd phase)
Adaptation Financing Needs by 2030
Adaptation Financial Flows
Private Sector Participation
Reaching LDCs and SIDS
PandanGreen (Pandan) was launched by experienced climate finance, impact investing and financial inclusion professionals in response to the global climate crises. Pandan is dedicated to the leveraging of large-scale private sector climate finance for the climate transition of vulnerable communities in our targeted countries.
Pandan is working with the international investment community and stakeholders for the funding of Inclusive Financial Institutions (IFIs) as intermediaries for the financing or the most vulnerable groups effected by climate change in rural communities with a focus on women who experience the greatest impact. Pandan is a proud winner of the 2020 Cohort of the Luxembourg's International Climate Finance Accelerator (ICFA).
As climate change takes hold across the developing world resulting in increased frequency and intensity of extreme weather events with adverse repercussions for agriculture, food and energy security and water availability, vulnerable communities, and particularly women, being among the most-exposed groups, increasingly seeking to adapt to these changes and increase their adaptation and resilience to safeguard their livelihoods. In most of our targeted LDCs and Pacific P-SIDS, international private climate finance does not make its way to the most vulnerable mostly due to inadequate risk adjusted returns for investors and/or regulatory barriers.
Inclusive Financial Institutions (IFIs) have key and singular role to play in delivering climate financing to the vulnerable communities they serve but they need to enhance their climate expertise, have a supporting ecosystem in the countries in which they operate, and be successful in leveraging external private sector finance to reach the significant levels of finance needed for adaptation and low-carbon climate-resilient solutions. There is therefore an urgent need for private climate finance scale-up through de-risking financial mechanisms and regulatory actions. Pandan’s work is fully aligned with the goal of Article 2.1.c) of the Paris Agreement, "making finance flows consistent with a pathway towards low greenhouse gases emissions and climate resilience development” as well as with countries’ Nationally Determined Contributions (NDCs) and National Adaptation Plans (NAPs).
Goals and Mission Ahead
Pandan aims to have a profound, sustainable impact in our targeted countries assisting communities, financial institutions, financial markets, and governments to adapt to and mitigate climate change, benefiting the most vulnerable people and nature
Pandan will facilitate climate finance at scale from capital markets and build the green ecosystem to enable vulnerable communities, including smallholder farmers & micro-small businesses, transition to low carbon climate resilient outcomes. Women and other marginalised groups most affected by climate change are at the core of our work.
PANDAN will provide long term sustainability loans to pre-selected partner Inclusive Financial Institutions (IFIs). IFIs will then be offering social and green financing to mostly women living in vulnerable rural communities most affected by climate change. Pandan will further tailor support schemes in the countries, working in partnership with the IFIs and local communities while being fully aligned with governments' national goals and climate commitments
To date, IFIs funded by DFIs and private impact investors have a minor part of their portfolios dedicated to climate finance. Pandan intends to significantly increase the proportion of climate financing by IFIs by tapping capital markets which are increasingly ready to expand ESG and Impact related investments.
Pandan offers a $150 million bond listed on the Luxembourg Green Exchange (LGX). Bond investors stepping in provide a major new source of capital to address climate finance to the most vulnerable.
The IFIs asset class is well established with a clear track record showing relative resilience to recent global financial crises.
Pandan will employ best practices and rigorous selection as well as employing financial mechanisms where needed for an adequate risk adjusted return.
OUR THEMATIC FOCUS
Climate solutions for rural vulnerable communities aim to help the most vulnerable communities adapt to the changing climate as well as support low greenhouse gas emission growth and development. Solutions can often address both aspects so we categorize these depending on the solutions' prime intention and the assess overall impacts.
Rural Communities Adaptation
Growth Through Low Greenhouse Gas Emission
Phase I issuance (Asia Pacific) - rural populations represent on average 70% of total population in developing Asia Pacific having around 350m small holder farmers. Women make more than 80% of selected IFIs borrowers. Pandan will be focusing on communities in rural geographies, biodiversity and environment as well as women living in these geographies, aiming for empowerment, transformational change and impact.
Smallholder Farmers, Micro, Small Agri Businesses
Women, Gender Lens Investing
Pandan's Sustainability Framework includes eligible thematic criteria covering both adaptation and mitigation solutions as well as a comprehensive climate solutions' selection and proceeds management procedures in place. Pandan will be measuring and reporting the total amount of allocated funds vs. planned as well as quantitative and qualitative indicators annually for capturing direct and indirect impacts of implemented solutions which includes tailored impact metrics for targeted groups including women, rural communities and biodiversity.
Pandan's work, as presented in its Theory of Change (ToC), is innovative, demonstrating proof of concept on various levels of the financial and economic systems, bringing a transformational change. Therefore, these important outcomes and outputs of our work will be captured and reported. Pandan's impact report will be posted annually on its website and in accordance with relevant regulatory requirements.
CORE MANAGEMENT TEAM
Fund Management, investors, governance, ICFA senior advisor
Fund Management, investors, capacity building
Technology, Innovation, Operations, Program Management