Gender-responsive climate finance market trends

The report identifies that only 22% of 551 climate-blended finance transactions were gender-responsive, with concessional debt or equity comprising 86% of these deals. Climate adaptation projects are more likely to be gender-responsive than mitigation-focused projects, driven by multilateral development banks (MDBs) and development finance institutions (DFIs) as key actors. Broader systemic gender inequalities persist, especially in the energy sector, where female labour participation remains low, particularly in leadership roles. Off-grid energy projects, associated with household energy needs, tend to be more gender-responsive, with 28% of such projects including gender considerations, compared to only 13% in large-scale on-grid energy projects.

Case studies of blended finance promoting gender mainstreaming within energy

• Green Guarantee Company (GGC): GGC is a global climate-focused guarantee company supporting green bonds and loans. With a USD 100 million capital base, it offers guarantees up to USD 1 billion. GGC integrates gender-based violence considerations and focuses on expanding energy access with gender-responsive metrics.
• Local Utility Project Accelerator (LUPA): LUPA is designed to assist local utility projects in developing countries. The program mainstreams gender by including gender-sensitive project components, such as energy access for women and clean cooking solutions.
• Catalyst Fund: A pre-seed equity fund investing in African startups building climate resilience. It integrates a gender lens across its portfolio, particularly in sectors like fintech and renewable energy. With USD 10 million raised so far, it uses concessional equity to protect senior investors while targeting a 20% internal rate of return (IRR).
• Beyond Finance Asia-Pacific Facility: This facility focuses on women’s economic empowerment through clean energy projects. It combines concessional financing with gender-focused technical assistance (TA) and monitoring frameworks, helping project developers include gender as a central component of climate projects.
• Sistema.bio: A social enterprise providing small-scale biodigesters to rural communities. It promotes gender inclusion by prioritising women-led households in the adoption of biogas solutions, helping them reduce dependence on traditional fuels.

Challenges and reflections

Key challenges include the lack of gender-specific metrics, limited engagement of local actors, and the need to move beyond counting beneficiaries to addressing systemic gender barriers. For example, while women and girls were the direct beneficiaries in only 2% of all deals, efforts to promote their leadership and equity in clean energy projects remain critical. The transition to a green economy offers a transformative opportunity to address these gender imbalances, enhancing climate resilience, driving innovation, and creating high-quality green jobs for women.

Recommendations

The report recommends that concessional capital providers offer grants and technical assistance (TA) to help deal sponsors integrate gender considerations. TA should be combined with performance-based incentives to reinforce gender and climate goals. Additionally, the report encourages going beyond “headcounting” by addressing deeper structural issues like gender-specific workforce development and product design.