Swedfund commits $12 million to SEACEF II for Southeast Asia's low-carbon transition
- Energy Box
- Feb 2, 2024
- 2 min read
In a significant move towards fostering a low-carbon transition in Southeast Asia, Swedfund has invested $12 million in the Southeast Asia Clean Energy Fund II (SEACEF II). This investment aims to provide crucial scale-up capital to early-stage companies dedicated to advancing the low-carbon transition in countries with heavy reliance on fossil fuels in the region.
Southeast Asia faces growth challenges and struggles to meet emission reduction targets due to its dependence on fossil fuels. The renewable energy sector in the region lacks adequate funding, hindering the development of viable projects. Swedfund’s investment in SEACEF II is poised to accelerate the low-carbon transition, contribute to sustainable economic development, and address inequalities in countries like Indonesia, Vietnam, and the Philippines.
SEACEF II focuses on filling the financing gap for early-stage and scale-up businesses involved in renewable energy generation, efficiency, and CO2 emissions reduction. Development Finance Institutions, including Swedfund, and blended finance vehicles like SEACEF II play a crucial role in mobilizing private funds, particularly for projects in their early stages and newer technologies like energy efficiency and storage.
Gunilla Nilsson, Investment Director Energy & Climate at Swedfund, emphasized that investing in SEACEF II provides the opportunity to support the development and scale-up of companies pivotal for an accelerated low-carbon transition as well as sustainable development in Southeast Asia.
The investment is expected to contribute to cleaner, more affordable, and efficient energy usage, reducing emissions in the region. Swedfund, as a first-close investor, will also play a role in supporting strategic, environmental, and social issues. The fund manager, Clime Capital Management, is committed to impact and additionality, aligning with Swedfund’s goals. Swedfund joins other development finance institutions and organizations in this initiative.
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