Baku, Azerbaijan – The Lightsmith Group (“Lightsmith”), a global sustainable private equity firm, announced that it has received support from the Global Environment Facility (GEF), through its Least Developed Countries Fund (LDCF) and Special Climate Change Fund (SCCF), U.S. International Development Finance Corporation (DFC), and U.S. Agency for International Development (USAID) to launch the Systemic Capital for Adaptation Localization and Expansion project, also known as SCALE. SCALE is the first proposed integrated investment strategy for adaptation and climate resilience – a “virtual green bank for adaptation.”
The SCALE project will develop a new scalable climate investment platform to provide the full range of equity, credit, and technical assistance to private companies whose technology and solutions support adaptation and resilience to climate change. GEF and DFC funding builds on USAID support, announced at New York Climate Week, to bring the SCALE project to full acceleration. DFC’s technical assistance is provided via a pre-investment grant that will share the cost of developing this project for potential DFC debt financing. SCALE is also supported by Conservation International, who acted as the implementing agency for Lightsmith’s prior projects with the GEF.
As the first adaptation investment platform strategy, SCALE is designed to accelerate the investment in and deployment of climate resilience and adaptation solutions particularly in developing countries. Leveraging its experience launching the first private investment fund for adaptation and climate resilience, Lightsmith will identify climate resilience-related companies, engage investors and funders, and develop systems for the new platform strategy. SCALE will consider support for climate resilience in human health, nature, and biodiversity, in addition to agricultural analytics, water efficiency and smart water management, resilient food systems, geospatial intelligence, supply chain analytics, catastrophe risk modeling and risk transfer, and energy.
GEF and DFC’s commitments were announced during the COP29 global climate talks in Baku. SCALE builds on Lightsmith’s leadership in climate adaptation and resilience investment. Founded in 2016, Lightsmith manages the first private equity fund focused exclusively on climate resilience and adaptation based on an investment strategy (sometimes referred to as “CRAFT,” the Climate Resilience and Adaptation Finance and Technology-transfer facility).
“The worst of the climate crisis will be averted only if we can partner across multilateral, bilateral and private sector actors, more often and at a larger scale than ever before integrating sectors that should be part of the financial climate solution. The scale of the climate crisis requires an unprecedented scale of investment and action and need the best tools, like SCALE, for higher impacts. The GEF is proud to be a core partner in the SCALE project, as one of a set of investments in innovative financing mechanisms through the Challenge Program for Adaptation Innovation,” said Carlos Manuel Rodríguez, GEF CEO and Chairperson.
“Financing for climate resilience and adaptation is vital for helping communities around the world address pressing challenges that impact their daily lives. DFC’s support for Lightsmith is an example of how DFC is leveraging its financial tools to expand financing for growth-stage climate adaptation companies that drive innovative, sustainable, and scalable impact around the globe,” said Aparna Shrivastava, DFC Deputy Chief Climate Officer.
“USAID is proud to have supported the development of Lightsmith’s SCALE platform, which holds immense potential to unlock essential financing for adaptation technologies and solutions where they’re most needed,” said USAID Chief Climate Officer Gillian Caldwell. “Transformative initiatives like this thrive on strong partnerships and complementary resources, so we are excited to welcome GEF and the U.S. DFC to this essential effort.”
“Investing in climate resilience and adaptation is an ‘unavoidable opportunity,’ particularly in developing countries. SCALE will develop the first private investment platform for climate resilience and adaptation technologies and solutions in developing countries – a ‘Virtual Green Bank’ for Adaptation. By creating a platform to match the right capital with the right investments, for the first time, SCALE presents a systemic answer to the systemic challenge of climate adaptation. Lightsmith is honored to partner with GEF, DFC, and USAID to launch a bold new platform for climate adaptation and resilience investment in developing countries,” said Sanjay Wagle, Co-Founder and Managing Director at The Lightsmith Group.
Lightsmith’s two founding partners, Jay Koh and Sanjay Wagle, each have over 20 years of experience in direct investing at the Carlyle Group and VantagePoint Capital Partners as well as at the U.S. International Development Finance Corporation (DFC), International Finance Corporation (IFC), U.S. Department of Energy, and New York Green Bank. Lightsmith’s global investment team draws from experience at Goldman Sachs, True North Partners, Baring Private Equity Asia, IFC, and the DFC.
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About The Lightsmith Group
The Lightsmith Group is a sustainable private equity firm that invests in companies that address critical societal needs. Lightsmith invests in growth-stage companies providing technology-enabled business services and solutions in the areas of energy, water, food and agriculture, and climate resilience. For more information on The Lightsmith Group, please see: www.lightsmithgp.com.
Media Contact
Sanjay J. Wagle
Managing Director
The Lightsmith Group
Sanjay.wagle@lightsmithgp.com
About DFC
The U.S. International Development Finance Corporation (DFC) is America’s development finance institution. DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today. We invest across sectors including energy, healthcare, critical infrastructure, and technology. DFC also provides financing for small businesses and women entrepreneurs in order to create jobs in emerging markets. DFC investments adhere to high standards and respect the environment, human rights, and worker rights.
About the Global Environment Facility
The Global Environment Facility (GEF) is a multilateral family of funds dedicated to confronting biodiversity loss, climate change, and pollution, and supporting land and ocean health. Its financing enables developing countries to address complex challenges and work towards international environmental goals. The partnership includes 186 member governments as well as civil society, Indigenous Peoples, women, and youth, with a focus on integration and inclusivity. Over the past three decades, the GEF has provided more than $25 billion in financing and mobilized $145 billion for country-driven priority projects. The family of funds includes the Global Environment Facility Trust Fund, Global Biodiversity Framework Fund (GBFF), Least Developed Countries Fund (LDCF), Special Climate Change Fund (SCCF), Nagoya Protocol Implementation Fund (NPIF), and Capacity-building Initiative for Transparency Trust Fund (CBIT).
About Conservation International
Conservation International protects nature for the benefit of humanity. Through science, policy, fieldwork and finance, we spotlight and secure the most important places in nature for the climate, for biodiversity and for people. With offices in 30 countries and projects in more than 100 countries, Conservation International partners with governments, companies, civil society, Indigenous peoples and local communities to help people and nature thrive together. Visit Conservation.org for more, and follow us on Conservation News, Facebook, Twitter, TikTok, Instagram.
About USAID
USAID is the world’s premier international development agency and a catalytic actor driving development results. USAID’s work advances U.S. national security and economic prosperity, demonstrates American generosity, and promotes a path to recipient self-reliance and resilience.
