A new climate finance platform co-founded by Japan’s largest financial group, Mitsubishi UFJ Financial Group (MUFG), has secured an initial $600 million to help developing countries adapt to climate change and cut greenhouse gas emissions.
The announcement comes as global business leaders convene in Brazil ahead of the COP30 climate summit, where pressure is mounting on nations and investors to bridge an estimated $300 billion annual shortfall in adaptation finance, as highlighted by the United Nations and echoed by figures such as Bill Gates.
The GAIA Climate Loan Fund, managed by Climate Fund Managers, will provide long-term loans to sovereign, sub-sovereign, and state-owned entities across 19 countries. The fund’s primary focus will be on resilience-building projects—particularly in sustainable agriculture and water management—while around 30% of its financing will support mitigation efforts, including renewable energy initiatives.
“Adaptation finance has been gaining momentum over recent COPs,” said Ariane Pevide, Director of Climate and Blended Finance at MUFG. “We hope GAIA’s launch will demonstrate how private sector capital can play a leading role in adaptation and serve as a market blueprint.”
Backed by FinDev Canada and the Green Climate Fund—the world’s largest dedicated climate fund—GAIA aims to expand to $1.5 billion by attracting additional investments from impact-focused institutional investors, including insurance firms, pension funds, and family offices, according to Amit Mohan, Head of Private Credit at Climate Fund Managers.
Once fully deployed, the fund is expected to benefit 19 million people, generate more than 11,000 jobs, and prevent 30 million tonnes of greenhouse gas emissions annually.
