Irish development partner Vita has released a review of its Green Impact Fund, www.vita.ie/vgif highlighting the potential for building a sustainable financing platform for delivering low-carbon, high-impact work in Africa. Vita started out in the 1980s as Refugee Trust International under the patronage of Mother Teresa, pivoting to work on sustainable livelihoods in Ethiopia and Eritrea in recent years. Vita’s Green Impact Fund has just completed a “proof-of-concept” stage, raising €2 million in investments and grants, much of it from the religious sector who are proving to be pioneers when it comes to social impact investment – especially around climate mitigation. The funding has facilitated equitable partnerships with communities to develop sustainable clean water and improved household cooking technology to over 300,000 people in Eritrea and Ethiopia.
In Southern Ethiopia, mother of four Hundene Huka now cooks for her family on a fuel-efficient stove. They have reduced their wood use by half, thanks to the stove. “The kids are healthier,” Hundene tells Vita. “I’m not getting sick anymore and the trees are growing back.” Vita’s hallmark is innovation and the €2 million generated over two million tonnes of carbon emissions reductions; these offsets were accredited and registered with the internationally recognised verification agency The Gold Standard with profits re-invested in communities, creating a circular model.
The next stage will involve scaling up to a regulated Independent Fund with capital of €20 million aiming to generate over four million tonnes of carbon emissions savings. Investors will benefit from a triple bottom line, with an expected return on investment of 10%, alongside verified outcomes aligned to the SDGs and climate action. Vita was invited by the Organisation for Economic Co-operation & Development (OECD) to present the Fund at their Private Financing for Development Week in Paris in early 2020, recognition of the Green Impact Fund as an example of Irish leadership blending innovative finance with development funding.