MILAN – Nespresso, South Pole, MIT’s Environmental Solutions Initiative, and Willis Towers Watson were among those announced today as winners of the Global Environment Facility’s inaugural Challenge Program for Adaptation Innovation, a new competition supporting private sector remedies for climate risk in developing countries.
The GEF Challenge Program for Adaptation Innovation supports scalable, bankable solutions that can help industries and communities cope with the adverse impacts of climate change, and build economies that are resilient to changing weather and water patterns. More than 400 submissions were received following a call for proposals in August. Half of the funding will be used to support initiatives in least developed countries.
“We were reassured by the many good ideas received about how to strengthen climate resilience in developing countries,” said GEF CEO and Chairperson Naoko Ishii. “As a member of the Global Commission on Adaptation, this is an issue close to my heart, one which is in great need for innovation and scaling up. I very much look forward to seeing the results of these new GEF-supported projects, which will pave the way to increase private investment for climate resilience in multiple markets.”
The nine winning project concepts were proposed by companies and other organizations working to increase climate resilience in developing countries. They include plans to develop coral reef insurance products in Asia and the Pacific; help provide capital and financial literacy of farmers to invest in climate resilience of coffee and cacao supply chains; deploy drones and other technology to inform better decision-making on climate risks; and help cities improve their creditworthiness, issue green bonds, and ramp up asset recycling. GEF partner agencies, who will work with the companies to develop the projects, include the Asian Development Bank (ADB), Corporación Andina de Fomento (CAF), Conservation International, the International Union for Conservation of Nature (IUCN), UN Development Program (UNDP), UN Environment Programme (UNEP), the UN Industrial Development Organization (UNIDO), and the World Wildlife Fund Inc. (WWF-US).
The winning sponsors who have their proposals approved will be eligible for between $500,000 and $2 million in seed funding, contingent upon final project proposal review and approval. The total of $10 million in financing from this Challenge Program will come from the GEF-administered Least Developed Countries Fund (LDCF) and Special Climate Change Fund (SCCF).
The GEF supports climate adaptation efforts mainly through the LDCF and SCCF. Since their inception in 2001, the GEF has provided over $1.5 billion in grant financing and mobilized more than $7 billion from other sources for 330 adaptation projects in 130 countries.
“Nespresso is thrilled about the partnership with GEF, which will allow the development of innovative solutions for coffee smallholders in complex contexts. Ensuring climate change adaptation and mitigation is key to protect livelihoods in coffee growing communities, now and in the long-term. Through this program we believe that we will create tangible changes on the ground.” – Daniel Weston, General Counsel & Global Head of CSV, Nespresso.
