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Global Citizen seeks up to $1 billion for six sustainable ‘Impact’ funds -Breaking


© Reuters. A wind turbine spins during a storm in California near Palm Springs on March 10, 2021. REUTERS/Mike Blake

By Simon Jessop

LONDON (Reuters), Global Citizen, an international non profit that aims at ending poverty worldwide, announced on Monday that it will launch six funds each of $1 billion to create social and environmental change in the developing world.

The Global Citizen Impact Funds aim to help plug a large gap in funding for poorer countries struggling to meet the United Nations 2030 Sustainable Development Goals, which include providing access to clean water and fighting climate change.

According to Mick Sheldrick, Global Citizen’s Chief Politician, the world’s poorest nations need to receive close to $400 billion in foreign finance annually to achieve these goals. However, they currently only get a small fraction, Reuters reported.

To help drive faster change, Global Citizen said its funds, created with partner NPX, would bring together philanthropists and investors using a financing model that it believes would prove scaleable quickly.

The organization hopes to raise donor funds in the coming six- to nine months. It is targeting $25 million per fund. However, most of the selected NGOs could grow quickly to absorb as much as $1 billion.

The model would see investors (primarily those with impact mandates) give money to NGO’s to expand their services and achieve certain goals. The Global Citizen fund would repay investors if it is successful and the results are independently verified by an independent third party.

Investors would see a 5-6% return on capital and NGO’s would receive an incentive payment. Donors would also be guaranteed that the funds would only go to initiatives that are successful.

Sheldrick expressed his belief that the vehicle has “the potential to be an innovative outcomes-fund vehicle which could transform philanthropy,” Sheldrick added. It is our hope that, in time, it will lead to an increase of the philanthropic capital for SDG related programmes.

The NGOs selected include One Acre Fund, which supports smallholder farmers in Africa around climate action, including through planting and protecting more trees.

The goal of the plan would be to help sustain 44 million trees that were planted in four years. This will result in 7.4 million tonnes carbon sequestered. It is possible that the project could be scaled up to support more than 1,000,000 trees by the end of the decade, provided it succeeds.

Other funds will be used to treat and detect malaria, improve literacy and numeracy skills for children living in crises settings and provide clean water access.