About

The International Climate Finance Accelerator (ICFA) is dedicated to supporting first- and second-time investment management or advisory firms in launching climate-focused investment vehicles. Designed to promote climate action in challenging geographies, ICFA offers a comprehensive support package to emerging fund managers who aim to deliver both financial returns and positive social and environmental impact. By combining financial resources, technical expertise, and practical guidance, ICFA empowers emerging fund managers to launch impactful investment vehicles. With a mission to advance global climate finance, ICFA supports the creation of sustainable solutions that address climate challenges and foster long-term economic and environmental resilience. Core Benefits of the ICFA Program: Financial Support: €80,000 Grant: Covers critical expenses such as fund structuring, risk management policy development, and impact measurement methodology. €200,000 Loan: Offered in collaboration with Spuerkeess and backed by the Luxembourg Government, this loan supports fund marketing, team development, and pipeline building. Access to Private Sector Expertise: ICFA partners with financial services firms specializing in sustainable finance, offering fund managers reduced rates on essential services. Capacity Building: Comprehensive training, coaching, and fundraising advice equip fund managers with the skills and tools needed to navigate the complexities of fund establishment and management. Program Objectives: Climate Finance Focus: Support for funds targeting climate change mitigation and adaptation. Challenging Geographies: Promote investments in regions eligible for international climate finance, ensuring high-impact deployment of resources. Sustainable Growth: Enable fund managers to align their strategies with measurable social and environmental outcomes.

Eligibility

• Emerging Managers: The applicant must be a first- or second-time investment manager or advisory company intending to establish an impact investment vehicle (the “Project”).
• Best Practices: The applicant must demonstrate adherence to recognized market practices and frameworks for responsible investments.
• Regulatory Compliance: Applicants must be or intend to be authorized by a competent EU Member State authority or operate under an equivalent regulatory regime.
• Impact-Driven Mission: The Project must target both financial returns and substantial, measurable impacts, particularly addressing unmet needs for specific populations.
• Environmental and Social Governance (ESG): An integrated system to identify, manage, monitor, and measure environmental and social impacts across 100% of the portfolio is required, alongside adherence to defined exclusion policies.
• Key Features of Eligible Projects:
• Focus on Climate Finance: At least 75% of total assets must be allocated to investments contributing to climate change mitigation and/or adaptation.
• Geographic Prioritization: Target investments must predominantly focus on regions eligible for international climate finance, with a minimum of 70% of assets allocated to these areas.
• Impact Measurement: Comprehensive systems for measuring and managing environmental and social impacts are essential, reflecting a strong commitment to transparency and accountability.
• Program Expectations:
• Refinement of Strategy: Applicants should have a solid investment strategy informed by feasibility studies and local expertise but be open to refining it with program support.
• Theory of Change: Teams should possess a well-developed understanding of their fund's potential impact and begin integrating these ideas into a robust impact measurement framework.
• Expertise and Team Readiness: A well-rounded team is critical, with expertise in fund management, investment strategy, technical skills, legal structuring, and pipeline development.
• Institutional Investor Confidence: Teams must demonstrate the capacity to align their pipeline with the investment strategy to attract commitments from institutional investors.