INITIATIVES
Initiatives Preamble
United Nations, COP 27
The final agreement highlights that “US$4 to US$6 trillion a year needs to be invested in renewable energy until 2030 – including investments in technology and infrastructure – to allow us to reach net-zero emissions by 2050.”
OECD
“US$ 6.9 trillion a year is required across energy, transport, building and water infrastructure to meet the world’s climate and development objectives.”
Global Initiatives
All funds are greenfield renewable energy funds
- Global Climate Private Equity ESG Fund
- Global Climate Private Debt ESG Fund
- Global Climate ESG Bank
- Global Geothermal Private Equity ESG Fund
- Global Green Hydrogen Private Equity ESG Fund
- Global Co-Investment Private Equity Based ESG Facility
- Global Direct Investment Project Based ESG Facility
- Global Euro Medium Term Notes ESG Facility
Regional Initiatives
All funds are greenfield renewable energy funds
- Africa Climate Private Equity ESG Fund
- Asia Climate Private Equity ESG Fund
- Asia Pacific Private Equity ESG Fund
- Caribbean Climate Private Equity Fund
- Europe Climate Private Equity Fund
- Indo Pacific Climate Private Equity ESG Fund
- Latin America Climate Private Equity Fund
- Middle East Climate Private Equity Fund
- North America Climate Private Equity ESG Fund
Economic Grouping Initiatives
All funds are greenfield renewable energy funds
- Emerging Markets Climate Private Equity ESG Fund
- OECD Climate Private Equity ESG Fund
Country Initiatives
All funds are greenfield renewable energy funds
Country Funds based on interest from individual countries, linked to global, regional, and emerging market initiatives
21 October 2022 and 5 December 2022: International Conference Calls
The two inaugural conference calls to discuss the global climate ESG fund, global climate ESG bank, and global co-investment and direct investment facilities were attended by more than twenty guests for the respective calls from government departments, private firms, banks and international organizations.
Executive Summary
Integra is proposing to set up global, regional, economic grouping and country initiatives to finance renewable energy and renewable energy infrastructure projects from 2023 to enable the Paris Accord target – limiting global temperature rise of 1.5 degrees Celsius relative to pre-industrial levels by 2050 – to be achieved.
Integra encourages the participation of governments and the private sector at the country, bilateral and multilateral levels in the development, financing, and implementation of the initiatives. Integra is the initiator and originator of the initiatives and shall assume a principal advisory role in each initiative.
Integra proposes ownership of each initiative of up to 60% and up to 40%, respectively, by qualified investors from the private sector and public sector. The initiatives may be pre-capitalized by qualified investors, subject to the rules and regulations set by the financial authority in the relevant jurisdiction. The domiciles of initiatives shall be determined in European Union countries.
The initiatives shall invest in solar, wind, pumped hydro storage, small hydro, bioenergy, geothermal, electricity transmission and distribution, distributed energy resources, energy storage, green hydrogen production; electric vehicles charging and hydrogen refuelling stations, rural electrification; local manufacturing of equipment, parts and components; and food security enhancement by local production of green nitrogen and green ammonia.
In terms of distributed energy resources and energy storage, which provides communities energy security in times of natural disasters, floods and wildfires that cause disruption of energy supply and curtailment of centralized generation, Integra proposes public private partnerships to invest in 1 kW-15kW solar battery storage homes and 1kg-5kg solar hydrogen storage homes, and extend these investments to 1MW-5MW for commerce and industry.
The funds shall be managed by General Partners and Local General partners nominated by Integra and anchor stakeholders that may include governments and the private sector. They may be pre-capitalized by Limited Partners, subject to the rules and regulations of the relevant financial authority.
Direct investors can invest to invest directly into projects related to the fund through a co-investment facility, or into projects not related to the fund through an alternative direct investment facility.
Pre-capitalization
If pre-capitalization of the initiatives is allowed, discounted shares may be issued. The initiatives shall be incorporated subject to the minimum capital requirements set by the relevant financial authority.
The target capitalization for each initiative shall be estimated based on identified projects which involve initial discussions with relevant parties.
Target Capitalization of the Initiatives and allocations
Up to US$ 1 trillion for the Global Climate Private Equity ESG Fund through ordinary share issues. Allocation of US$ 700 bn for private and public sectors of G7 countries, US$ 300 bn Rest-of-World. If G7 quota is not taken up by final capital call, it is allocated to other qualifying countries.
Up to US$ 1 trillion for the Global Climate ESG Bank through share issues. Allocation of US$ 700 bn for private and public sectors of G7 countries, US$ 300 bn Rest-of-World. If G7 quota is not taken up by fifth capital call, it is allocated to other qualifying countries. Additional capital calls to be authorized subject to consultation with anchor shareholders. The Bank may not provide debt and invest equity more than 10% of its capital in any qualifying single country.
Capitalization of other initiatives, which shall be linked to the Global Climate Private Equity ESG Fund and the Global Climate ESG Bank, shall be determined later.
Country Investment Capital Quota: Individual countries
Integra proposes up to 2,000 MW installed generation capacity at a nominal total investment cost of US$ 2 million/MW for each participating country, which can be increased to 6,000 MW.
The total investment capital of up to US$ 4-12 billion for each country can be utilized for renewable energy generation and renewable infrastructure.
For G7 countries, as prescribed in relevant prospectuses, the upper investment capital limit for each country may be set much higher than US$ 12 billion.
For individual countries, including G7, which renewable energy ESG country funds may be structured, the upper investment limit may be set.
Country as part of an equity, debt or equity-debt investment portfolio
Two conditions apply. No more than 10% of the target or pre-authorized investment capital can be invested into the country. The cumulative investment by any investor country’s public and private sector investors into the investee country cannot exceed 10% of the invested capital.
Investment Strategy
Top-Down Approach
Raise capital, Do projects
Independent Oversight Committees
Integra proposes two independent international oversight committees – investment and financing, and environmental, social and governance – for the selection of service providers and the pre-qualification of investors for each initiative. The tenets for the committees shall be the United Nations Charter.
Proposed Qualifications for Stakeholders
Integra proposes that the equity holdings in each initiative by the private and public sectors, in terms of the country of origin, should not exceed 60% and 40% of the target capital respectively.
Draft Information Memorandum and Prospectus
Draft information memoranda and prospectuses for the initiatives are works-in-progress.
Projects
To date, Integra has identified potential renewable energy projects in 149 countries and independent states with commercial wind, solar, hydro storage and bioenergy resources; 52 countries with solar, small hydro and bioenergy resources; and 25 countries without wind but with hydro storage resource. Integra has also performed initial project scoping for 45 dependent territories.
Breakdown of potential projects covering:
Onshore/Offshore wind, solar, hydro storage, bioenergy, small hydro, geothermal
Stand-alone, cluster, hybrid, hybrid firm generation
Capital dependent: Transmission, distribution, green hydrogen, EV charging and refuel stations
Wind countries: 149
Africa 32
Australasia 2
Caribbean 12
Central, South and East Asia 17
Central and South America 16
Emerging Europe-EBRD 16
EU, EFTA, EEA, principalities 31
EU, wind from neighbouring country 1
Europe principality, wind neighbouring country 2
Middle East 11
North America 2
South Pacific 7
Wind, Solar and Natural Hydro Storage resources countries: 84
Natural Hydro Storage resources countries: 107
Solar resource countries: 201
Bioenergy resource countries: 140
Geothermal resource countries: 56
Transportation
The Global Climate Green Hydrogen Private Equity Fund shall invest in renewable energy generation amounting to 1% of the installed generation capacity of each participating country, and electrolyzers for the production of green hydrogen.
Green EV Stations
Electricity supply – Up to 5% of electricity generated from projects to be distribution to commercial Level 2-3 battery charging stations, and up to 10% to electrolyzer-hydrogen refuelling stations.
Green construction – Up to 5% of capital for the construction of battery charging EV stations and integrated electrolyzer-hydrogen EV stations.
Food Security
Fertilizer production – Up to 5% of capital for production of green nitrogen from ionization of air and demineralized water by renewable energy electricity, and the synthesis of green nitrogen and green hydrogen to produce ammonia.
New soil carbon land development – Up to 5% of capital for development of new land with soil carbon stock to increase production of crops and livestock, at sites near Integra’s wind and solar energy projects in different countries.
Renewable energy electricity and fertilizer exchange – Up to 5% of capital to facilitate trading of cross-border electricity, green hydrogen, green nitrogen and green oxygen from countries hosting Integra’s wind and solar projects that are expected to experience food production due to drought, and countries expected to increase food production by 2050.
International Interest
Integra has received interest from public sector, private firms, and international organizations from several countries in the initiatives.
Investment Governance
Integra proposes that the total investment by any country, in terms of collective capital from public and private sectors from that country, into any project country, should not exceed 10%, with a proposed exception of more than 10% for G7 countries with a combined upper limit of 70%.
Project Selection Governance
The selection of a project for an investment is an independent process based on project risk, merit and ESG delivery. The selection process is jointly assigned to the initiative manager and the two independent oversight committees.
Environmental, Social, Sovereign and Corporate Governance (ESG)
ESG: Integra proposes a pro-bono allocation (grant) of between 0.1%-1% of total project investment capital in each initiative towards climate adaptation; protection of environment and natural habitats; women’s economic empowerment; children and gender; youth climate leadership; social economic development of indigenous communities; early warning systems of climate impacts; and planning for the re-location of croplands, livestock and farming communities to higher ground due to changing precipitation patterns, saline intrusion, sea level rise, flooding, droughts and desertification.
Exclusions
Integra proposes the exclusion of any project that is involved in, or connected to, crypto currency or blockchain financing.
Emissions Trading
Integra proposes a 10% and 5% surcharge, respectively for up to $ 50 per carbon dioxide equivalent ton and up to $ 100 per carbon equivalent ton trading, to the ESG program of the project country.
Climate Youth Leadership
Integra shall invite, by the anniversary of the first initiative, climate youth leaders of each gender from UN, non-UN and independent states, to participate in the first general meeting. The communities of each state are welcome to nominate its two climate youth representatives based on their commitment to promote climate change policies at the national level, with safeguards on energy and food security.
Global Climate ESG Fund
An international renewable energy fund with ESG mandate
INTEGRA GLOBAL CLIMATE ESG FUND
Integra Clean Energy is proposing a new global renewable energy fund to be set up in 2023/2024
Purpose of the Fund
The purpose of the global fund is to attract equity and debt capital to finance green-field and expansion renewable energy generation, transmission and distribution projects to assist international efforts to limit average surface temperature rise to 1.5 degrees Celsius by 2050.
Integra shall select local and international experts with regulatory skills to assist fund managers and project developers to comply with the rules and regulations of different markets and jurisdictions.
Geographical and Diversified Portfolio Coverage, allocations may overlap between funds
| Countries | Propose 50 Projects |
|---|---|
| Africa | 5 |
| Americas, including CARICOM | 10 |
| Australasia | 5 |
| Central and West Asia | 5 |
| East and South Asia | 10 |
| EU countries | 10 |
| Non-EU European countries | 5 |
ESG Environmental Social Governance
Integra proposes a pro-bono allocation (grant) of between 0.1%-1% of total project investment capital to include equity and debt, in each initiative towards climate adaptation; protection of environment and natural habitats; women’s economic empowerment; children and gender; youth climate leadership; social and economic development of indigenous communities; early warning systems of climate impacts; and planning for alternative land for croplands, livestock and farming communities affected by changing precipitation, saline intrusion, sea level rise, flooding, droughts and desertification.
Proposed Project Capital Allocations on Generation, T&D and Energy Storage
| Wind and Solar and Transmission Projects | 40% |
| Biomass and Biogas and Transmission Projects | 10% |
| Small Hydro, Pumped Hydro Storage and Transmission Projects | 40% |
| Geothermal & Transmission Projects (subject to location) | 5% |
| Energy Storage and Transmission Projects | 5% |
Proposed Project Time-Lines
| Project Type | Duration |
|---|---|
| Large Scale Solar and AC Transmission, onshore | 1-2 years |
| Large Scale Solar and HVDC Transmission, onshore | 1-4 years |
| Large Scale Wind and AC Transmission, onshore | 1-2 years |
| Large Scale Wind and AC Transmission, offshore | 2-4 years |
| Large Scale Wind and HVDC Transmission, offshore | 1-2 years |
| Large Scale Wind and AC Transmission, onshore | 3-5 years |
| Large Scale Wind and HVDC Transmission, onshore | 3-4 years |
| Large Scale Wind Solar, AC Transmission, onshore | 2-3 years |
| Large Scale Wind Solar, HVDC Transmission | 4-5 years |
| Biomass, Biogas Generation and Transmission | 1-2 years |
| Small Hydro Generation and Transmission | 1-2 years |
| Geothermal Exploration, Generation, Transmission | 3-5 years |
Equity and Debt Funds
Equity
15 Year Closed End Funds; except for Geothermal, 20 Year Closed End Funds
- Equity Subscription Closing Period 12 months.
- Investment Period: Up to 4 years.
- Harvesting Period: Year 5-Year 10.
- Investors are expected to leave investments intact for a period of 5 years.
- Target equity net IRR: 10%-15%.
Debt
15 Year Closed End Funds; except for Geothermal, 20 Year Closed End Funds
- Equity Subscription Closing Period 12 months.
- Investment Period: Up to 4 years.
- Harvesting Period: Year 5-Year 10.
- Investors are expected to leave investments intact for a period of 5 years.
- Target debt net IRR: 8%-10%.
Investment Tax Credits
Integra proposes up to 30% of the value of Investment Tax Credits (ITCs) to be provided to individual and corporate investors, in each fund subject to discussions and agreement between investor and investee governments. The ITCs may be applied to equity dividends, interest, interest coupons and capital gains subject to approval by the governments.
Country Participating Status:
Several countries have responded with initial interest in Integra’s initiatives.
Partners, initial shortlisted
- Fund Managers
- General Partners
- Limited Partners
- Fund Sponsors
- Fund Administrators and Custodians
- Legal Advisors
- Audit Advisors
- Investment Advisors
- Construction Contractors
- Asset Managers