45134-004: Establishing a Pilot Center to Facilitate Climate Technology Investments in Asia and the Pacific-Promotion of Investment in Climate Technology Products through Venture Capital Funds (Subproject 1) | Asian Development Bank

Regional: Establishing a Pilot Center to Facilitate Climate Technology Investments in Asia and the Pacific-Promotion of Investment in Climate Technology Products through Venture Capital Funds (Subproject 1)

Sovereign (Public) Project | 45134-004 Status: Active

The TA subproject is under the cluster regional CDTA Establishing a Pilot Center to Facilitate Climate Technology Investments in Asia and the Pacific. It is one of the two components of ADB's Asia Climate Change and Clean Energy Venture Capital (AC3E VC) Initiative and will be implemented as part of the Initiative. The Initiative seeks to accelerate innovation, transfer and diffusion of low-carbon and climate change adaptation technologies by providing early stage support that will help new technology products become more competitive and affordable to the large consumer base in developing Asia. The equity component of $60 million, which was approved by the Board on 20 May 2011, is expected to leverage more than $200 million from other investors. The subproject will complement the equity component through the provision of technical advisory support to selected venture capital (VC) funds.

 
Project Name Establishing a Pilot Center to Facilitate Climate Technology Investments in Asia and the Pacific-Promotion of Investment in Climate Technology Products through Venture Capital Funds (Subproject 1)
Project Number 45134-004
Country Regional
Asian Development Bank
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8018-REG: Establishing a Pilot Center to Facilitate Climate Technology Investments in Asia and the Pacific - Promotion of Investment in Climate Technology Products through Venture Capital Funds (Subproject 1)
Climate Change Fund US$ 950,000.00
Technical Assistance Special Fund US$ 842,000.00
Clean Energy Fund under the Clean Energy Financing Partnership Facility US$ 1.50 million
TA 8018-REG: Establishing a Pilot Center to Facilitate Climate Technology Investments in Asia and the Pacific - Promotion of Investment in Climate Technology Products through Venture Capital Funds (Subproject 1)
Global Environment Facility US$ 2.90 million
TA 8018-REG: Establishing a Pilot Center to Facilitate Climate Technology Investments in Asia and the Pacific-Promotion of Investment in Climate Technology Products through Venture Capital Funds (Subproject 1)(2nd Supplementary)
Technical Assistance Special Fund US$ 500,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Agriculture, natural resources and rural development / Agricultural production - Irrigation - Land-based natural resources management

Energy / Energy efficiency and conservation

Finance / Infrastructure finance and investment funds

Health / Health system development

Transport / Urban public transport

Water and other urban infrastructure and services / Urban solid waste management - Urban water supply

Gender Equity and Mainstreaming
Description The TA subproject is under the cluster regional CDTA Establishing a Pilot Center to Facilitate Climate Technology Investments in Asia and the Pacific. It is one of the two components of ADB's Asia Climate Change and Clean Energy Venture Capital (AC3E VC) Initiative and will be implemented as part of the Initiative. The Initiative seeks to accelerate innovation, transfer and diffusion of low-carbon and climate change adaptation technologies by providing early stage support that will help new technology products become more competitive and affordable to the large consumer base in developing Asia. The equity component of $60 million, which was approved by the Board on 20 May 2011, is expected to leverage more than $200 million from other investors. The subproject will complement the equity component through the provision of technical advisory support to selected venture capital (VC) funds.
Project Rationale and Linkage to Country/Regional Strategy The objective of the complementary technical assistance component is to broaden and better target the technology reach of venture investments in developing member countries (DMCs) through identification of promising emerging technologies and potential investee start-up companies, and through technology assessments of fund managers' proposals. The expert advice provided through this knowledge component will also lower the technology risk of the VC fund investments.
Impact Increased availability of affordable climate mitigation and adaptation technologies on the market in Asia
Project Outcome
Description of Outcome Increased investments by selected early stage investment funds in technologies that address climate mitigation and adaptation
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Overall management and coordination of services to venture capital and private equity fund managers

Identification of technology opportunities across sectors

Identification of a pipeline of candidate climatech projects and investee companies

Technology assessments of proposals from fund managers

Monitoring of technology aspects of investments made by fund managers

Support to emerging venture capital and private equity funds in frontier markets

Status of Implementation Progress (Outputs, Activities, and Issues)

The TA seeks to catalyze the scale-up of climate and clean technologies ("cleantech") by supporting greater investment in companies in developing and deploying innovative cleantech solutions in Asia and the Pacific. The TA is focusing on three different areas of activities, (1) supporting cleantech focused venture capital (VC) and private equity (PE) funds and other types of investors; (2) supporting accelerator and incubator programs to create a deeper pipeline of investable cleantech entrepreneurs; and (3) building a regional cleantech network and enabling sharing of best practices & knowledge.

The TA is supporting a number of cleantech investors in Asia-Pacific region. This includes supporting the set-up and operations of the Asia Climate Partners (ACP), which successfully closed a US$400 million PE fund in December 2014. So far, ACP has evaluated around 300 investments, which led to more than 15 investment proposals resulting in four executed deals totaling more than $100 M. The TA has also provided advisory support to Infuse Ventures for their investment portfolio of cleantech companies, including for their six additional investments. Several of these companies have since achieved significant growth in sales and revenues. In PRC, the TA is supporting the set-up of two new large green financing platforms, of which a portion will be used for equity investment targeting innovative Chinese cleantech start-ups and projects. As part of its support for investors, the TA has also organized several events where selected cleantech start-ups have been pitching and showcasing to an audience of investors, including VC/PE funds, corporates, angels and family offices.

The TA has also backed and partnered with more than ten different programs (e.g. accelerators, incubators and bootcamps) for supporting early-stage cleantech start-ups across Asia. In total, through these activities, more than 1000 cleantech start-ups applied for support. 100+ received intense training and mentoring and were showcased to investors. This resulted in more than 30+ receiving additional investment and funding. In India, for example, the TA supported PowerStart, India's first cleantech start-up accelerator backed by the Centre for Innovation, Incubation and Entrepreneurship (CIIE) at IIM Ahmedabad and Infuse Ventures. In PRC, in 2016, the TA partnered with one of the leading local incubators, TusStar, and co-organized a nationwide cleantech startup competition and bootcamp in 2016. Two of the supported companies received funding, while another one got listed on the local stock market. A second ADB-TusStar competition is currently ongoing.

To support cross-border collaboration and networking, as well as knowledge sharing, in 2016, the TA partnered with the California Clean Energy Fund (CalCEF) to launch the New Energy Nexus, a global platform of more than 30 clean energy accelerators and other stakeholders that together aim to support more than 100,000 cleantech start-ups in the coming years. As part of this, ADB and CalCEF also organized the first Global Clean Energy Accelerator Retreat in Manila in June 2016, bringing together 30 cleantech accelerators, incubators, and early-stage investors from 13 countries. A second, and expanded, global retreat will take place in November 2017 in Shanghai. In 2016, the TA also launched the China Cleantech Nexus, the first-of-its-kind platform in China that brings together a dozen leading cleantech accelerators, incubators and seed investors; this has led to a number of new collaborations in support of scaling Chinese cleantech start-ups.

The TA has also supported a number of events bringing together entrepreneurs, investors, large companies, policy-makers and other cleantech specialists. For example, the TA supported the Global Cleantech Summit organized by The Climate Group in Beijing, PRC on March 2016 as well as co-organized the Asia-Pacific Summit on Low Carbon Technology together with the Hunan Provincial Government in Changsha, Hunan, PRC in October 2016. A second Summit is planned for November 2017. The Subproject is also supporting smaller knowledge sharing events in the Philippines to stimulate greater interest in clean technologies in the local startup community.

More recently, the TA is scaling up its efforts to support ADB DMCs and ADB operations to expand its financing and adoption of innovative new clean energy and climate technologies. This includes supporting ADB and ADB DMCs in developing new financing platforms for funding of cleantech projects and businesses, as well as exploring opportunities for greater adoption and piloting of innovative cleantech solutions within ADB operations, e.g., in Bangladesh, the Maldives, Fiji, Cambodia, the People's Republic of China, and Vietnam.

Geographical Location Regional
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design

As part of the market research for ADB's Asia Climate Change and Clean Energy Venture Capital Initiative, interviews with over 50 venture capital firms and over 10 investors were conducted in Australia, PRC, India, Japan, Singapore, South Korea, and United States. In addition, three meetings were organized in Mumbai, Seoul, and Beijing where over 80 fund managers participated.

With respect to the TA component of the Initiative, most venture capital fund managers, especially generic venture capital funds indicated that the value-added services to be provided through the Initiative's grant program will facilitate their entry or expansion to climatech industry.

During Project Implementation The TA will conduct seminars and share reports with stakeholders including potential local managers for climatech venture capital funds and interested international partners.
Business Opportunities
Consulting Services The TA will require inputs estimated at 271 person-months from international consultants and 89 person-months from national consultants. Consulting firms will be engaged to establish a global anchor team and regional teams that will provide advisory assistance to selected venture capital fund managers.
Responsible ADB Officer Zhai, Yongping
Responsible ADB Department Sustainable Development and Climate Change Department
Responsible ADB Division SDSC
Executing Agencies
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 20 Dec 2011
Last Review Mission -
Last PDS Update 02 Oct 2017

TA 8018-REG

Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
2,292,000.00 4,400,000.00 0.00 0.00 0.00 0.00 6,692,000.00 - 0.00

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Safeguard Documents See also: Safeguards

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Evaluation Documents See also: Independent Evaluation

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Related Publications


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Tenders

Tender Title Type Status Posting Date Deadline
Senior Energy Storage Specialist - Nepal Study Individual - Consulting Closed 05 Aug 2017 11 Aug 2017
Senior Energy Expert (Power System Engineer) - Nepal Study Individual - Consulting Closed 05 Aug 2017 11 Aug 2017
Program Coordinator Individual - Consulting Closed 04 Aug 2017 10 Aug 2017
Program and Logistics Manager Individual - Consulting Closed 04 Aug 2017 10 Aug 2017
Junior Cleantech Marketing & Partnerships Consultant Individual - Consulting Closed 03 Aug 2017 09 Aug 2017
Cleantech Investment Specialist Individual - Consulting Closed 20 Apr 2017 03 May 2017
Agricultural Logistics Specialist Individual - Consulting Closed 11 Apr 2017 27 Apr 2017

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.