Accelerating Impact Investments for Climate and Nature in Asia 2025

ADM Capital launched the Asia Climate-smart Landscape Fund for Indonesia in November 2023, harnessing its depth of experience in ESG-integrated private capital lending in the region to create sustainable impact. The fund aims to address the major funding gap for small- and medium-sized enterprises (SMEs) engaged in sustainable agriculture, agroforestry and aquaculture by providing medium-term senior secured lending, and links 50% of carry to achieving impact. Access to funding is a significant obstacle for these SMEs due to perceived credit and ESG risks in the sector and country, even though they are vital to the Indonesian economy and a key part of the net-zero transition. The initiative sets both financial and impact targets for projects, including enhancing livelihoods and increasing employment, achieving fairer gender ratios, improving land use management and reducing greenhouse gas emissions. The implementers found that a technical assistance facility was also required to sit alongside the fund to support the transition work of the companies involved and their supply chains, achieve best practice and improve credit and impact outcomes. The US International Development Finance Corporation provides a 50% guarantee across the fund at the asset level and the United States Agency for International Development, Rabo Foundation and the Australian Government’s Department of Foreign Affairs and Trade also participate in the guarantee. This has catalysed six investors, with seed commitments secured from Calvert Impact Capital, Ceniarth, the David and Lucile Packard Foundation, the John D. and Catherine T. MacArthur Foundation, Margaret A Cargill Philanthropies and RS Group. The fund is targeting total commitments of up to $200 million in further closes. The initiative is bolstered by its partnerships with NGOs such as Partnerships for Forests and Convergence, which brings further local experience and knowledge, as well as the National University of Singapore Centre for Nature- based Climate Solutions, which supports the development of methodologies around carbon, biodiversity and high conservation value (HCV) assessments. ADM Capital’s fund provides sustainable business models that serve as proof of concept and bring more investors into the country and sector. Plans are also in place to scale, with a particular focus on traceability technology, digitization and data sharing, which would further help smallholder farmers to secure their livelihoods.Asia presents a unique opportunity for piloting climate and NbS that are not only investable but also scalable and replicable. As a result, many investors are increasingly drawn to the region, united by a shared goal of diversifying their portfolios with innovative investments that generate positive social and environmental impact. These investors are often willing to accept potentially lower market valuations compared to those in Europe and North America, recognizing the long-term value and impact potential in Asia. Solutions that were once viewed as high-risk are now gaining recognition as viable investment opportunities, with capital deployment in South-East Asia, in particular, experiencing significant growth in recent years.17 Moreover, the diverse and locally tailored investment opportunities in the region also present a compelling case for attracting philanthropic capital and donors.18 Donors who are eager to support climate and nature agendas are increasingly presented with a wider range of investable projects that have the potential for commercial scalability. Given the interconnected nature of social and environmental impacts in Asia, these opportunities offer the potential for combined positive outcomes, further enticing a broad spectrum of investors and stakeholders, as demonstrated in case study 3. Diverse and locally tailored investment opportunities in Asia present a compelling case for attracting philanthropic capital and donors. CASE STUDY 3 Asia Climate-smart Landscapes Fund Accelerating Impact Investments for Climate and Nature in Asia 9