The project aims to promote low carbon solutions and climate adaptation in selected AIIB members in MENA, to mobilize private capital for infrastructure by catalyzing other DFI and commercial investors into the Fund, and to develop the fund management sector in the region.
Catalyst Investment Management is launching Catalyst MENA Climate Fund 2 (“CMCF2”) with focus on climate mitigation and climate adaptation investment strategy. CMCF2 will target Middle East and Northern Africa (MENA) region, primarily Egypt, Jordan and Tunisia.
AIIB's Environmental and Social Policy (ESP) is applicable to the Project, which has been assigned Category FI since it involves the provision of funds to CMCF2. An Environmental, Social and Governance Framework (ESGF) has been prepared in congruence with AIIB’s Environmental and Social Framework (ESF), including Environmental and Social Standards (ESSs) and the Environmental and Social Exclusion List (ESEL).
After conducting prior review of the initial investments, the Bank will delegate to the Fund the selection, appraisal, approval and monitoring of the Fund’s further investments in subprojects, in accordance with investment guidelines to be agreed with the Fund, in line with the ESGF and AIIB’s ESP including ESSs and ESEL. The Fund’s approximate pipeline has been mutually agreed and is aligned with the Bank’s sector strategies. Coal mining, coal transportation or coal-fired power plants as well as infrastructure exclusively dedicated to support any of these activities will be excluded.
The Fund will invest primarily in renewable energy, energy efficiency, wastewater treatment and desalination, green hydrogen and ammonia projects, which may comprise of the development of greenfield/brownfield assets, primarily in Egypt, Jordan, and Tunisia. Such projects may involve land acquisition, people resettlement, obtaining of necessary government permits, and various construction-related environmental and social safeguard issues, such as labor and working conditions.
The project team will review all subprojects and require detailed prior review of the first three subprojects. For all Category A and higher-risk Category B subprojects, AIIB will require the Fund to furnish detailed environmental and social due diligence assessment and instruments for the Bank’s prior review and approval. Regarding solar subprojects, the client (FI) will review potential supply chain issue related labor and working conditions and require appropriate mitigating measures and seek AIIB's advice if required.
The Fund discloses a summary of its ESGF on its website. The Fund will be required to disclose the name, industry and location of subprojects supported with AIIB’s proceeds, within twelve months from closing an investment. The Fund maintains an External Communication Mechanism (ECM) to address third-party views, enquiries or concerns regarding their own ES processes and outcomes, as well as ES impacts and performances of their subprojects.
In addition, the Bank will require the Fund’s subprojects to maintain effective subproject-level grievance redress mechanisms (GRM), to conduct appropriate stakeholder engagement, to disclose the required ES documentation, and to provide information on established GRMs and AIIB’s Project-affected People's Mechanism (PPM) to stakeholders in a form of understandable language(s) and appropriate manner.
Home Projects Project Summary Project List Project Details Multicountry: Catalyst MENA Climate Fund 2 (“CMCF2”)
