COFIDES launches the innovative Kuali Fund: A multi-million dollar push to combat climate change in Latin America and India.

 

This impact investment fund, the first of its kind in Spain with the backing of the United Nations Green Climate Fund, will be dedicated to strengthening climate resilience and fostering low-carbon economies in Latin America, the Caribbean and India.

 

The launch of Kuali Background, made in Madrid, brand a milestone in the fight against climate changeThe fund's impact is expected to result in the prevention of more than 4 million tons of CO₂ equivalent emissions over its 10-year lifespan. It is also expected to directly benefit 500.000 smallholder farmers and MIPYMES, addressing their adaptation and resilience needs.

 

In the encounter Generating impact through climate finance, which he has gathered in
COFIDES to the main investors of the fund, the president and CEO of
COFIDES, Angela Perez, has announced that the Kuali Fund, whose financial structuring has
run by COFIDES, has already completed its first closing with 129 million euros
with the contribution of the Green Climate Fund, and contributions from the European Union, the
Spanish Cooperation, through the Fund for the Promotion of Development (FONPRODE) and
COFIDES.

 

“This milestone marks a key moment in COFIDES’ commitment to climate finance. It is the first COFIDES project approved by the Green Climate Fund, an essential partner, along with the European Union, in mobilizing resources to strengthen the resilience and adaptation of vulnerable communities. We are pleased to have led the structuring of this innovative fund, through which we contribute to mobilizing private capital for climate mitigation and adaptation, combining social impact and financial sustainability,” he noted. Angela Perez.

 

Henry González, director of Green Climate Fund Investments (GCF, for its acronym
(in English), has expressed its strong support for the Kuali Fund: “The Green Climate Fund is proud to support the Kuali Fund and its innovative approach to climate action. By mobilizing greater private sector investment, the fund plays a key role in scaling up adaptation and mitigation efforts. Its commitment to promoting greener and more inclusive business models is fully aligned with the GCF’s mission and strategic priorities.”

 

For its part, Jose Carlos Villena, Director of Development Partnerships at COFIDES, moderated the round table “Mobilizing investment in climate finance”, which included the participation of Agustín Vitórica, co-CEO of GAWA Capital; Fernando Jiménez-Ontiveros, Director of Financial Cooperation and General Management of the Spanish Fund for Sustainable Development; Franck Viault, Head of Cooperation, European Union Delegation to India and Bhutan; Horst Pilger, Head of Sector at Global Gateway, Investments and Private Sector (European Commission); and Eloy González de la Peña, Investment Advisor at iCapital.

 

The importance of public-private collaboration to maximize the impact of climate investment was highlighted during the event. Representatives of the European Union, Franck Viault and Horst Pilger, they emphasized: “a fund like Kuali perfectly illustrates how the TeamEurope deploys innovative financing mechanisms to attract much-needed private investment to partner countries. Experience has shown that EU contributions, by providing guarantees and reducing risks for investors, make it possible to increase financing to such an extent that €1 public euro mobilizes €9 from other investors.

 

Fernando Jiménez-Ontiveros He added: “The Kuali Fund represents a firm commitment to sustainable financing, allowing small farmers and SMEs to access key resources to strengthen their climate resilience and promote a greener economy. Through this initiative, Spain strengthens its leadership in impact investing, combining public and private financing to accelerate the transition toward sustainable economic models in regions vulnerable to climate change.”

 

Antonio Garrigues-Walker He emphasized: “In a context of declining public funding for cooperation in emerging markets, public-private partnerships are emerging as a key pillar for impact investing, focused on addressing the most pressing environmental and social challenges. These collaborative models allow us to unite the financial capacity and efficiency of the private sector with the strategic vision and reach of the public sector, maximizing the mobilization of private capital toward transformative impact in vulnerable communities.”

 

Agustín Vitónica and Luca Torre, from GAWA Capital, stated: “At Kuali, we are proud to address one of the greatest challenges of our time: strengthening the climate resilience of the world’s most vulnerable communities. Through strategic investments in financial institutions and climate solutions providers, we facilitate access for small farmers and businesses to the resources they need to adapt to a constantly changing climate and strengthen their businesses. Our blended finance approach, backed by catalytic capital from the European Commission, the UN Green Climate Fund (GCF), and AECID, allows us to mitigate risk and increase the return on investments, attracting large institutional investors seeking both impact and financial returns.”

 

Jose Carlos Villena, from COFIDES, concluded: “Public-private partnerships are essential to achieving development goals.” In his opinion, development finance institutions “must focus their efforts on establishing the necessary structures to ensure the convergence of interests and, thus, attract private investment; otherwise, the financing gap cannot be filled.”

 

The Kuali Fund, managed by GAWA Capital, will distribute its resources among 25 financial institutions and climate solutions providers in India and Latin America, including grants for technical assistance.