According to the Green Climate Fund (GCF), the Mekong Earth Regeneration Fund (MERF) could expand to USD 200 million by attracting additional investment from private sector investors.
The fund aims to deliver direct benefits to nearly 280,000 people and support more than 33,000 indirect beneficiaries, including many farmers in the Mekong region (Photo: Nam Binh).
The fund will operate over 12 years and invest in around 10 to 12 businesses involved in regenerative agriculture, sustainable forestry and low emission aquaculture across the lower Mekong region, including Vietnam, Laos and Cambodia.
The GCF's investment will be channelled through Deutsche Bank, an accredited GCF entity responsible for managing and overseeing the funding.
The GCF said private investment in low emission agriculture remains insufficient because of high upfront costs, long investment payback periods and constraints related to technology, expertise and policy support.
By adopting a blended finance model, the MERF is expected to mobilise additional private capital for sustainable agricultural production across the region.
Over its 12 year lifespan, the fund aims to deliver direct benefits to nearly 280,000 people while indirectly supporting more than 33,000 others.
The initiative also targets a reduction of approximately 8.5 million tonnes of carbon dioxide equivalent (CO2e) emissions, while creating jobs, expanding market access and improving farmers' incomes.
The move also marks a strategic shift for Mekong Capital. After years of focusing on investments in retail, consumer goods, restaurants and education through high profile deals involving Mobile World, Masan Consumer, PNJ, Golden Gate and Pizza 4P's, the investment firm is expanding into biotechnology and agricultural technology to capitalise on growing demand for climate focused and sustainable investments.
