Africa Decarbonisation Fund 1 renewable energy projects for businesses and communities through PPAs and VPPAs

The Africa Decarbonisation Fund I, managed by Scalar International and Mergence Investment Managers in partnership, will invest in energy-efficient / decarbonisation projects in the private commercial and industrial (C&I) sector within the Southern Africa Development Community (SADC). The fund was created to address the lack of participation of first tier women- and youth-led SMEs in the climate transition. The fund’s technical assistance facility will empower these SMEs into the supply chains of decarbonisation projects. Transformation has a dual meaning in the context of our investments: transforming the ownership patterns of the clean energy and digital infrastructure sectors in tandem with transforming the nature and extent of infrastructure access for inclusive economic growth and development.

The Luxembourg so-called article 9 fund is currently in its marketing stages and pipeline development with a target size of $100-$150m. It aims to reduce 1 GT of carbon emissions by 2030; achieve energy efficiency in 30,000 buildings by crowding in investment of at least $300 million; and create 15,000 full-time jobs.

Scalar International was one of only five fund managers chosen out of 66 as part of the 2024 cohort of the International Climate Finance Accelerator, a programme powered by Accelerating Impact.