The Subnational Climate Fund

What The Subnational Climate Fund does

The Subnational Climate Fund (SCF) is a Geneva-headquartered blended finance initiative that invests in and provides technical assistance for mid-sized (USD 5-75 million) climate infrastructure projects in developing countries. The initiative is structured as two components: the SCF Fund, an investment vehicle managed by Pegasus Capital Advisors that deploys equity across sustainable energy, waste and sanitation, regenerative agriculture, and nature-based solutions, and the SCF Technical Assistance Facility, a USD 28 million grant-funded program managed by the International Union for Conservation of Nature (IUCN) and implemented with the Catalytic Finance Foundation and Gold Standard to support project preparation, SDG/SDG certification, and alignment with National Determined Contributions. The Green Climate Fund (GCF) acts as anchor investor with a first-loss tranche of up to USD 150 million, structured to leverage 4x private capital at the fund level and up to 24x at the project level.

SCF's go-to-market is direct partnership with subnational authorities (state, regional, and local governments) in developing countries, sourced through project submissions, coalition participation (LUCI, Climate Finance Lab, One Planet Summit), and consortium-led origination. Revenue derives from private equity management fees and equity returns on the SCF Fund; the Technical Assistance Facility is grant-funded and non-revenue-generating. The model is positioned as the first private equity fund to combine an integrated TAF with pre-investment SDG certification, and has been endorsed by the Climate Finance Lab (2020), selected under LUCI, and included in the One Planet Summit coalition. Recent disclosed deals include a June 2026 BNDES-financed (USD 23 million) agroforestry project with Courageous Land in Brazil's Roraima state and a June 2026 technical assistance grant to FlxEV to advance an electric minibus taxi pilot in South Africa, indicating active deal execution across Latin America and Sub-Saharan Africa.

Name

The Subnational Climate Fund

Legal name

Subnational Climate Fund

Website

https://subnational.finance

Company type

Private

Operating status

Operating

Headcount range

1–10 employees

Short description

The Subnational Climate Fund (SCF) is a Geneva-based blended finance initiative that invests USD 5-75 million in mid-sized climate infrastructure projects across sustainable energy, waste and sanitation, regenerative agriculture, and nature-based solutions in developing countries, supported by a USD 28 million Technical Assistance Facility and a USD 150 million GCF first-loss tranche.

Ownership category

akta.pro rank

Product category

Climate Finance / Impact Investment

NAICS

Funds, Trusts, and Other Financial Vehicles (525)

SIC

Investment Advice (6282)

akta.pro primary industry

Climate / Clean Tech & Decarbonization Funds (FSANAJAA)

akta.pro secondary industries

Sustainable Infrastructure & Resilient Cities Funds (FSANAJAC), SDG / Thematic Sustainable Investment Funds (FSANAJAN), Climate Finance Funds & Green Investment Facilities (BPADACAH)

Keywords

• Blended climate finance
• Subnational infrastructure investment
• Climate impact funds
• Technical assistance grants
• Nature-based solutions finance

Headquarters

HQ city

Geneva

HQ country

Switzerland

HQ region

Europe

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure

Revenue model

1. Investment Fund Management: The SCF Fund, managed by Pegasus Capital Advisors, invests equity in a global portfolio of mid-sized infrastructure projects ($5-$75m USD) in sustainable energy, waste and sanitation, regenerative agriculture, and nature-based solutions. Revenue generated through private equity management fees and returns on equity investments.
2. Technical Assistance Grants: $28M grant-funded Technical Assistance Facility that supports project preparation. Managed by IUCN and implemented with Catalytic Finance Foundation and Gold Standard. This is a grant facility, not revenue-generating.

Pricing tiers

Go-to-market motion1 record

Distribution channels1 record

Marketing channels4 records

Core offering

The Subnational Climate Fund is a global blended finance initiative that invests equity ($5-75 million per project) in mid-sized subnational infrastructure projects across sustainable energy, waste and sanitation, regenerative agriculture, and nature-based solutions in developing countries. It combines the SCF Fund (managed by Pegasus Capital Advisors, anchored by a USD 150 million Green Climate Fund first-loss tranche) with a USD 28 million Technical Assistance Facility (managed by IUCN with Catalytic Finance Foundation and Gold Standard) that prepares projects for investment and certifies them for SDG impact prior to commitment.

Product overview

The Subnational Climate Fund (SCF) operates as a two-component blended finance initiative: (1) the SCF Fund, an investment vehicle managed by Pegasus Capital Advisors that deploys $5-75 million in mid-sized infrastructure projects across sustainable energy, waste and sanitation, regenerative agriculture, and nature-based solutions in developing countries, with GCF providing a USD 150 million first-loss tranche; and (2) the SCF Technical Assistance Facility, a $28 million grant-funded program managed by IUCN that provides technical support to strengthen project proposals and ensure achievement of NDCs, SDG impacts, and environmental goals.

Differentiator

Problem solved

Functional benefit

Brands

• SCF Fund: The investment fund component managed by Pegasus Capital Advisors that invests in mid-sized infrastructure projects in sustainable energy, waste and sanitation, regenerative agriculture, and nature-based solutions.
• SCF Technical Assistance

Products and services

• SCF Fund Global blended finance investment vehicle managed by Pegasus Capital Advisors that invests equity of $5-75 million per project in mid-sized infrastructure projects in sustainable energy, waste and sanitation, regenerative agriculture, and nature-based solutions in developing countries. Anchored by a Green Climate Fund first-loss tranche of up to USD 150 million.
• SCF Technical Assistance Grant-funded facility ($28 million) managed by IUCN in partnership with Catalytic Finance Foundation and Gold Standard that provides technical support and grant funding to subnational authorities and project developers to identify and strengthen investment proposals, and certifies projects for SDG impact and Nature-Based Solutions prior to investment.

Quantifiable outcome

• 4x private capital leverage at fund level through $150M GCF first-loss tranche
• +4 more outcomes

Named customers2 records

Segments2 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature1 record

Partnerships

Six partnerships are on record, tiered core and minor.

• International Union for Conservation of Nature (IUCN)coreImplementation/ SI/ Consulting PartnerIUCN manages the Technical Assistance Facility with GCF financial support, providing technical support and grant funding to stakeholders in identifying and strengthening investment proposals.
• Catalytic Finance FoundationcoreStrategic or Co-development PartnerImplements the Technical Assistance Facility together with IUCN and Gold Standard. Also contact point for SCF at [email protected].
• Gold StandardcoreImplementation/ SI/ Consulting PartnerImplements the Technical Assistance Facility together with IUCN and Catalytic Finance Foundation, providing certification for SDG impact and nature-based solutions.
• MobalyzminorChannel Partner/ Reseller/ DistributorProvides financing facilitation, debt collection, insurance, and asset recovery services for the FlxEV eKamva fleet.
• Cities Climate Finance Leadership Alliance (CCFLA)minorStrategic or Co-development PartnerHosts LUCI framework to elevate and track commitments. SCF selected as one of 20+ initiatives helping deliver urban climate projects worldwide.
• Climate Finance LabminorStrategic or Co-development PartnerSCF instrument endorsed by Climate Finance Lab 2020 cycle based on criteria of innovation, financial sustainability, catalytic potential, and actionability.

Scale indicators9 records

Recent moves5 records

Expansion highlights4 records

Direct peers

• Lightsmith Group: Lightsmith Group is a private equity firm investing in climate adaptation and resilience solutions globally. It is comparable to SCF as both deploy private capital into climate solutions in emerging markets, with a focus on achieving measurable environmental and social outcomes.
• Pollination Group: Pollination is a climate change advisory and investment firm specializing in climate finance, sustainable infrastructure, and nature-based solutions. It is a direct peer to SCF because it operates at the intersection of project development, capital mobilization, and policy advisory for subnational climate projects.
• Mirova Natural Capital: Mirova Natural Capital is an investment platform dedicated to financing nature-based solutions, sustainable land use, and biodiversity-positive projects in emerging markets. It is a direct peer to SCF given its focus on NbS and regenerative agriculture within a climate-positive private equity structure.
• Climate Fund Managers (CFM): Climate Fund Managers is a blended finance asset manager that develops, structures, and manages climate-focused investment vehicles, particularly in emerging markets. CFM is a direct peer to SCF given its similar mandate of mobilizing public and private capital into climate mitigation and adaptation projects in developing countries.
• Private Infrastructure Development Group (PIDG): PIDG is an infrastructure development and finance organization that mobilizes private investment into infrastructure in frontier and emerging markets. It is directly comparable to SCF because it bridges the same "missing middle" of project preparation and capital mobilization for infrastructure in developing countries.
• Climate Asset Management (CAM): Climate Asset Management is a joint venture between HSBC and Pollination focused on natural capital and climate solutions investing. It is a direct peer to SCF because it deploys institutional capital into nature-based solutions and sustainable land use projects with measurable climate impact.
• responsAbility Investments: responsAbility is an impact asset manager investing in renewable energy, sustainable agriculture, and emerging-market climate infrastructure. It is comparable to SCF given its use of blended finance to deploy private capital into climate-aligned projects in developing economies.

Others

• Climate Investment Funds (CIF): Climate Investment Funds is a multilateral climate finance mechanism housed at the World Bank that channels donor capital into renewable energy, resilience, and forestry programs. It is comparable to SCF as a catalytic public climate finance vehicle but is ecosystem infrastructure rather than a direct investment competitor.

Broad incumbents

• Brookfield Climate Transition Investments: Brookfield Asset Management operates large-scale climate transition and renewable infrastructure investment platforms globally. It is a broad incumbent peer to SCF given overlapping climate infrastructure investment themes, though at materially greater scale and with a more developed-markets tilt.
• Generation Investment Management: Generation Investment Management is a large sustainable investment firm managing public and private equity strategies with a climate focus. It is a broad incumbent peer to SCF, offering overlapping climate mandate capabilities but operating at significantly greater AUM scale across listed and private markets.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks5 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/subnational-climate-finance-initiative-scf
• Xx.com/SCFInitiative

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments1 record

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about The Subnational Climate Fund