Deutsche Bank is helping launch the Mekong Earth Regeneration Fund, a new private equity climate fund in Southeast Asia backed by the Green Climate Fund. The fund is designed to support the transition to sustainable and resilient agriculture and food systems across the Lower Mekong region.
The Green Climate Fund is investing $50 million in the new climate fund through a structure facilitated by Deutsche Bank. The investment is expected to help attract additional capital at a 3:1 ratio, highlighting the role of blended finance in mobilizing climate investment in emerging markets.
The Mekong Earth Regeneration Fund aims to reduce emissions by about 8 million tons and support more than 300,000 people. It will focus on agribusinesses and value-chain companies that work directly with smallholder farmers.
The fund will support businesses advancing lower-emission and climate-resilient practices. These include regenerative farming, agroforestry, sustainable aquaculture, improved soil health, reduced chemical inputs, and stronger ecosystem resilience.
Deutsche Bank is an accredited entity of the Green Climate Fund and will provide oversight for the program. The bank will help ensure that capital is deployed in line with GCF policies, including international environmental and social standards.
Mekong Capital will provide fund manager services and invest the capital. The fund is Mekong Capital’s dedicated impact initiative, building on the firm’s experience as a Vietnam-focused private equity investor.
The fund is designed to address a gap in climate finance in emerging markets such as Vietnam and Laos. These markets have historically had limited private equity capital available for regenerative agriculture and other priority climate sectors.
By providing equity capital, the fund offers longer-term funding for companies working on regenerative agriculture and sustainable land use. This structure can help companies invest in climate-aligned business models without immediate repayment pressure.
The program also reflects the growing role of public-private partnerships in climate finance. Deutsche Bank said blended finance can help reduce risk and attract institutional capital into markets and sectors that may otherwise be viewed as harder to finance.
KEY QUOTES:
“Blended finance structures like MERF are critical to unlocking private capital at scale. By combining concessional funding with institutional investment, we can accelerate innovative climate solutions to reduce emissions in markets which can be perceived as higher risk.”
Kamran Khan, Head of Sustainable Finance for APAC & MEA at Deutsche Bank
“This investment demonstrates the strategic power of GCF’s catalytic climate finance to crowd in much larger investment flows from public and private sector. With an ambitious target size, the project aims to support several companies in the agro-forestry sector, promoting sustainable land-use practices and low-emission development pathways in Lao People’s Democratic Republic and Viet Nam. The project reflects GCF’s commitment to adopt innovative finance solutions to deliver capital at scale for climate action.”
Hemant Mandal, Regional Director for Asia and the Pacific at Green Climate Fund
