ClimatePlace aims to be the first online platform specifically designed to connect developers of climate-related projects (such as solar, wind, hydropower, energy efficiency, water and wastewater treatment and sustainable agriculture projects) in touch with investors for emerging markets.
Currently, funds for projects addressing climate change operate as a disseminated model with over 50 public and 6,000 private uncoordinated sources. The target clients are potential developers of small to medium sized projects in developing countries that must conduct manual searches to access climate financing. It is thus difficult for these developers and investors to find one another because there is no system to facilitate investments.
ClimatePlace will fill this gap by becoming the top marketplace and investment matchmaker to streamline financing towards climate change projects that are externally financed by private investors at the international level. This is a USD 25bn market which is growing rapidly.
The platform is global, the address of the company is in Switzerland.
Objectives and beneficiaries
The objective of the marketplace is to unlock the growing amounts of climate finance for projects that support climate change mitigation and adaptation.
ClimatePlace aims to be the first marketplace combining a global climate change project and investor preference dataset with fundraising and brokerage capabilities. We plan on boosting traffic by exploiting the team’s contacts within developing countries and with development finance institutes as well as using the marketplace’s timeliness due to the recent positive conclusions of COP21.
The beneficiaries will be the millions of people living in emerging economies who will have access to sustainable energy supplies and sustainable livelihoods. The market represents 20m tons of C02 savings per year at present.
Strong points of the practice
ClimatePlace’s marketplace is sorely needed in a field that is not yet organized, yet is receiving significant global investments due to increasing awareness of climate change impacts and social responsibilities. The platform includes a unique, proprietory database of the top 100 private investors in emerging economies for sustainable projects. Also, having worked with or within many of the development finance institutions that ClimatePlace is targeting for public finance, the team has an extensive investor network. As indicated by COP21, coinvestments by the public and private sector in climate finance is critical.
The ClimatePlace team has strong experience in private equity finance, climate change project development, renewable energies, platform management, due diligence and entrepreneurship. Due to the team of engineers’ extensive experience with climate-related projects, ClimatePlace has the capability to pre due-diligence financial, technical and legal aspects of projects as well as to seek out the best investor sources for projects through its proprietary database of over one hundred investors.
Additionally, the ClimatePlace team has experience in using competitor’s products to understand what is lacking. Other online brokers exist for renewable energy projects, but only on a small scale. International investments banks arrange financing but it is not easily accessed by the local developers in emerging economies that ClimatePlace is targeting.
Expected results and benefits for climate change adaptation and mitigation
ClimatePlace was developed to address a gap seen by its team working in both public and private sectors handling climate finance. The team's contacts within development banks and in the financial sector state there is a need and are ready to continue improving the platform.
The platform uses a secure deal platform, accredited in Switzerland, to ensure trust by investors and developers. To date, ClimatePlace has secured a wind energy project in Mongolia with further projects in the pipeline. ClimatePlace plans to boost traffic to cover more developing regions by promoting the marketplace at climate finance events.
ClimatePlace will get more projects on the ground to support both climate change adaptation and mitigation. The market for externally financed by private equity at the international level is potentially a USD 25bn market, which represents 20m tons of C02 savings per yr.
To ensure revenue for the company, ClimatePlace will charge a 1% brokerage fee on successful transactions.
Replicability potential of the practice
As ClimatePlace is an online platform, it is easily scaled up and will benefit from networking effects. The model has only limited costs associated with each new project such as marketing and due diligence costs.
[Editor's Note: All information published as submitted by the author(s). Minor edits may have been made to increase readability and understanding.]