Abler Nordic Secures Support for Climate-Smart Initiatives in Indonesia
Deal News | Dec 13, 2024 | Norfund
To combat deforestation and improve climate resilience in Indonesia, Abler Nordic has secured a credit guarantee from Temasek Foundation for its Climate Smart Fund. This initiative, supported by Norfund and a USD 10 million investment from the Norwegian government, aims to blend public and private financing to foster sustainable farming practices. The fund targets smallholder farmers in Kalimantan and Sumatra, providing them with resources such as quality seeds and sustainable fertilizers to increase yields without forest encroachment. Additionally, by adopting intercropping strategies, the initiative seeks to diversify farmer incomes and enhance resilience against climate change. The pilot phase has already trained 2,100 farmers, increasing their incomes by 35%. With a goal to expand support to 30,000 farmers and raise USD 40 million by 2030, the Climate Smart Fund demonstrates a promising model for sustainable, climate-adaptive agriculture development.
Sectors
- Agriculture
- Climate Change and Environmental Services
- Private Equity/Finance
Geography
- Indonesia – The primary focus of the article is the implementation of sustainable agricultural practices in Indonesia to curb deforestation and support climate resilience.
- Norway – Norwegian entities, including the Ministry of Climate and Environment and Norfund, support the Climate Smart Fund, indicating their involvement.
- Singapore – Temasek Foundation of Singapore is a key financial backer, illustrating the country's involvement in promoting sustainable initiatives.
Industry
- Agriculture – The article focuses on sustainable agricultural practices, especially in relation to combatting deforestation and increasing productivity among smallholder farmers in Indonesia.
- Climate Change and Environmental Services – The primary aim of the Climate Smart Fund is to mitigate climate change impacts and preserve rainforests, underscoring the environmental motivation of the initiative.
- Private Equity/Finance – The article involves financial arrangements and investments from private equity firms like Norfund and Temasek Foundation to drive climate resilient agricultural initiatives.
Financials
- USD 10 million – Pilot funding provided by Norway's Ministry of Climate and Environment.
- USD 40 million – Target amount for the first close of the Climate Smart Fund by 2030.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Abler Nordic | Initiator | Company | Abler Nordic manages the Climate Smart Fund and seeks to drive sustainable agriculture in Indonesia. |
| Norfund | Financial Support and Guidance | PE Firm | Norfund, a Norwegian private equity firm, provides financial support and guidance for the project. |
| Temasek Foundation | Credit Guarantee Provider | Charity | Temasek Foundation provides a credit guarantee to lower financing risks and attract private investment. |
| Norwegian Ministry of Climate and Environment | Financial Support | Government | This ministry provides pilot funding, supporting the Climate Smart Fund with public resources. |
| Livelihoods Fund, SNV, Musim Mas | Partners in Agroforestry Initiatives | Company | Collaborators testing agroforestry models in palm oil cultivation as part of the Climate Smart Fund's initiatives. |
| Koltiva, Swisscontact, ICRAF | Partners in Climate-Adaptive Loans and Systems | Company | Partners facilitating climate-adaptive loans and agroforestry systems for cocoa and coffee farmers. |