Impact-focused investment firm LeapFrog announced today plans to commit more than $500 million to climate solutions companies, aimed at providing green tools and technologies to 50 million low-income people in combatting climate change in Africa and Asia.
Launched in 2008, LeapFrog invests in exceptional businesses in emerging Asia and Africa, in areas including healthcare, financial services and climate solutions businesses in high-growth global markets, enabling ‘leaps’ of growth, profitability and impact.
Under the new commitment, the company stated that it plans to focus on the built environment, energy, mobility, and food sectors, expecting to generate 90 million new jobs while avoiding 8 gigatonnes of greenhouse gas emissions by 2030.
Dr Andy Kuper, CEO and Founder of LeapFrog, said:
“Investing in climate solutions across emerging markets is not just the right thing to do, but also a highly compelling commercial opportunity. In the next decade we want to act as a catalyst and enabler for billions of low-income consumers finding clean pathways into prosperity by accessing – via LeapFrog companies – sustainable, efficient products that both improve their quality of life and protect their environment.”
The announcement was made at the US-UK Climate Finance Mobilisation Forum hosted by US Special Envoy on Climate John Kerry and UK Secretary of State for Energy Security Grant Shapps.
According to the company, funding for green businesses in emerging markets has grown 28% annually over the last 10 years, yet still accounts for less than 5% of the necessary $330 billion annual investment required to support the shift to clean alternatives.
Grant Shapps, UK Secretary of State for Energy Security, said:
“I welcome LeapFrog’s plan to invest in green technologies for developing nations, helping them not only to cut their emissions, but also deliver national and energy security as their economies continue to grow.”
Leapfrog’s recent investments include Sun King, the world’s largest off-grid solar energy company, benefiting 102 million people and saving $6bn in energy costs. It also helped CarDekho, a mobility platform revolutionizing electric vehicles in South Asia, secure a $250 million investment.
Kuper added:
“Climate is a global problem that capital markets need to approach through a global lens, and we urgently need to invest more in these countries if we have any hope of hitting the emissions reduction targets we have set for our planet.”
The post LeapFrog Investments Commits Over $500 Million to Climate Solutions in Developing Economies first appeared on ESG Today.
The post LeapFrog Investments Commits Over $500 Million to Climate Solutions in Developing Economies appeared first on ESG Today.