Southeast Asia Clean Energy Fund II

Date: 2024

Asset Class: Venture Capital & Real Assets

Description:  Southeast Asia Clean Energy Fund II (SEACEF II) is a target $135m Fund positioned to deploy early-stage and scale-up capital into ventures and companies accelerating the low carbon transition in Southeast Asia. The Fund is managed by Clime Capital out of Singapore and will predominantly invest across Vietnam, the Philippines, and Indonesia in the following subsectors: Utility Scale Solar and Wind; Rooftop Solar; Energy Storage and Efficiency; Electric Mobility; and Grid Resilience and Infrastructure. This is a blended fund with a 25% "first loss" junior layer that serves as downside protection. This investment is in the senior tranche which targets a 14% return for 10 years.

Why We Invest: Rapid economic growth and urbanization in Southeast Asia have driven a surge in energy consumption, predominantly from fossil fuels, which comprise 83% of the region's energy mix. As a result, they are the three fastest growing GHG economies in the world. Quicker deployment of utility scale renewables will replace new coal plants. To achieve carbon neutrality and sustain economic growth, the region requires significant investment, estimated at over $367bn in the next five years to align with Paris Agreement goals. SEACEF II addresses a funding gap for businesses and ventures driving the low-carbon transition in Southeast Asia. Mainstream banks, developers, and utilities shy away from early-stage investments due to their associated risks; however, they require capital to scale, de-risk, and achieve meaningful climate impact. SEACEF's intended impact is to catalyze the sector and crowd in the vast amounts of capital that are needed.