Seed Capital Assistance Facility (SCAF)

Many barriers inhibit private sector financing of low-carbon projects in developing countries. During early development, projects carry a significant risk that is reduced only once all permits have been secured and the legal, operational and financial viability has been demonstrated. Although the investment requirements are modest in the early stages, third-party financing is usually not available. This leaves the financial burden to project developers, who are often poorly capitalised and unable to fully develop projects on their own.

The Seed Capital Assistance Facility addresses this financing gap by providing financial support on a cost-sharing and co-financing basis via private equity funds, venture capital funds and project development companies through its three Support Lines. SCAF does not support stand-alone projects but rather looks into establishing a mid-term working relationship with its partners, supporting them in growing the team, building local capacity, fostering early-stage pipelines and advancing specific projects to financial close.