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Future Earth Ltd designed a gender responsive blended finance instrument for the Government of Antigua and Barbuda to support vulnerable SMEs invest in climate resiliency measures.
Future Earth Ltd designed a gender responsive blended finance instrument for the Government of Antigua and Barbuda to support vulnerable SMEs invest in climate resiliency measures.
Future Earth Ltd was contracted on behalf of the Government of Antigua and Barbuda, Department of Environment, to design a new blended finance instrument to help meet NDC and sustainable development goals. The work was supported by the Commonwealth Secretariat in collaboration with the NDC Partnership.
As an island nation, Antigua and Barbuda is vulnerable to the impacts of climate change and pockets of poverty heighten climate risks for some parts of society, like small farmers and fisherfolk. Recognising this challenge, the Sustainable Island Resource Framework (SIRF) Fund was established in 2019 as a financial vehicle to deliver climate and environment-related projects and programmes both domestically and across the Eastern Caribbean.
Following the success of its Adaptation Programme, the SIRF Fund wanted to expand financial support beyond concessional loans, and offer additional forms of concessional capital to small and medium-sized enterprises (SMEs) to help them decarbonise and become more resilient to climate change.
Approach
Approach
A highly participatory and inclusive approach was taken to engage with key stakeholders encompassing umbrella groups of women farmers, government entities, commercial banks, credit unions, national and international funders and potential beneficiaries.
Central to the approach was the iterative capture of capital access constraints and design requirements through open dialogues, inclusive of gender needs.
Core components
Core components
Among several portfolio level targets, 40% of the financing will be awarded to SMEs in which women comprise 30% or more of the owners, management or staff.
The unique bended finance window includes:
A technical assistance grant package covering pre-application advice; technical, financial and business development support; plus gender and inclusion training.
A micro-equity investment for the adoption and transfer of climate smart/renewable technology (of up to EC$500,000 or US$185,000). The insured technology remains the property of the SIRF Fund until the full cost of the technology is recovered, and legal ownership is then transferred to the SME according to an agreed flexible, long-term schedule of market price-linked in-kind or cash repayments via accredited channels.
A concessional financial loan (of up to EC$500,000 or US$185,000) at 2% interest rate is repaid according to an agreed schedule.
An in-kind repayment mechanism to approved product off-takers with flexible repayment schedules according to SME requirements.
The SIRF Fund window will be operational in 2025-26 and will be evaluated for impact using a novel impact tracking app being developed by Future Earth Ltd.
Resources
Short Fact Sheet Designing the SIRF Fund Gender Responsive Blended Financing Window
NDC Partnership/Commonwealth Secretariat Webinar Accelerating Inclusive Gender-Responsive Climate Finance for Effective NDCs: The Role of National Climate Funds
The SIRF Fund Gender-Responsive Blended Financing Window Synthesis Report
Future Earth Ltd is a signatory of the Gender and Energy Compact
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