Mekong Earth and Forest Fund Adopts New Strategy
Agriculture and forestry are key sectors in the lower Mekong region and are affected by climate change. The Mekong Earth and Forest Fund (“MEFF”) is a new project of Mekong Capital that is envisioned to be an impact and climate fund. The fund’s objective will include making investments in companies with business models that can help the world mitigate and adapt to climate change through the regeneration of forests and soil in the lower Mekong region (Vietnam, Thailand, Laos and Cambodia).
The Dutch Fund for Climate and Development (DFCD) supports Vision Growth Ltd (Mekong Capital) with the development of an investment strategy for an impact investment fund, Mekong Earth and Forest Fund (MEFF).
With assistance from the DFCD, Mekong Capital will build knowledge and finalise the strategy to increase confidence, with the goal of ultimately securing funding from three main sources: Development Finance Institutes (DFIs), Foundations and Commercial LPs.
The DFCD’s Origination Facility Investment Committee has approved an origination project proposal to support Mekong Capital in developing the project. Mekong Capital envisions that MEFF will target investments in companies which are adopting nature-based solutions and are able to scale their impact on regenerating forests, increasing the health and fertility of soils, increasing biodiversity and protecting surrounding water bodies that will improve climate resilience of vulnerable communities in Vietnam, Laos, Cambodia and Thailand.
With this approval, the SNV Netherlands Development Organization (SNV) has the intention to sign a EUR 303,750 grant funding agreement with Mekong Capital. The technical assistance package with SNV will support Mekong Capital in building knowledge and finalizing the investment strategy of MEFF, including topics such as ESG policy, E&S framework and ESMS, carbon credit strategy and appropriate financing structures.
It is contemplated that the investment strategy of MEFF will include investments in both adaptation and mitigation projects in the agriculture and forestry sectors. The project also expects to contribute to the implementation of national NDCs and NAPs in the relevant countries. Furthermore, it is contemplated that MEFF will seek to contribute towards the United Nations’ Sustainable Development Goals.
About SNV
SNV is a not-for-profit international development organisation that makes a lasting difference in the lives of people living in poverty by helping them raise their incomes and access basic services. We focus on three sectors – agriculture, energy, and water – and have a long-term, local presence in 24 countries in Asia, Africa, and Latin America. Our team of approximately 1,300 people is the backbone of SNV.
About Mekong Capital
Mekong Capital was established in 2001 and formed the first private equity fund to focus uniquely on investing in private Vietnamese companies. Mekong Capital has a team of over 60 professionals and has made 43 investments in Vietnam with 28 exits. Mekong Capital envisions that MEFF will be an impact and climate fund with an investment strategy that places emphasis on mitigating and adapting to climate change through the regeneration of forests and soil in the lower Mekong region. Mekong Capital will seek to build a strong and experienced investment team for MEFF, which will consist of members with expertise in forestry, carbon, regenerative agriculture, and ESG investing.
To read the full disclosure document, please click here.
For more information and if you want to share any confidential information you may have regarding the intended project or company, please contact:
SNV - Dutch Fund for Climate and Development: Mr Alex Downs, adowns@snv.org