Our approach to adaptation finance
35% of Southeast Asia’s GDP is at risk from climate change by 2050.
Yet finance for climate adaptation accounts for only 12% (USD 3.4bn) of annual climate finance flows to the region. This shortfall in financing drives greater losses and damages, disproportionately affecting vulnerable communities.
The Panra Fund is our solution: a new blended climate adaptation fund designed for farmers, with embedded ecosystem technology and revenue-based solutions.
Locally led
Agrifood systems are the world’s biggest employer, providing livelihoods to over a billion people. Yet, their underpinning ecosystems are deeply tied to local contexts, making a one-size-fits-all investment approach untenable.
Using our established networks across Southeast Asia, we identify impactful business opportunities with talented teams, and then partner closely to help them achieve long-term, sustainable growth, financial returns, and positive impact.
We work closely with experts in impact investment, agronomy and climate science across the region in order to deliver tangible adaptation and resilience outcomes.
Technology driven
Flows of climate adaptation finance are hampered by the lack of verifiable data, specifically with regards to climate resilience outcomes.
Working in partnership with Planetary X we embed ecosystem resilience assets (ERAs) into the investment diligence, monitoring, and revenue model of our agribusiness investment portfolio; creating both a measurable adaptation framework and a new income stream for investees and farmers.
The ERAs that are purchased are instantly retired (no secondary market) and the majority of funds from the sale of the assets are distributed to directly to farmers.
Blended finance
Panra will provide patient, revenue-based, and convertible loans to regenerative agriculture enterprises, while a digital platform verifies and monetizes outcomes like improved soil health and biodiversity. This creates a dual-return model, delivering financial returns to investors and direct, performance-based ecosystem payments to farmers.
Meanwhile, revenue-based finance and convertible debt instruments at the product level will provide flexible finance for agribusinesses involved in the supply of agricultural inputs, agricultural production, transformation of agricultural products, and their distribution to consumers.