Monthly Round-Up | September & October 2024
Dear friends and colleagues,
We’re back with the next edition of D&A’s Monthly Round-Up, combined for the last two months, spotlighting the select developments, collaborations, convenings, and reports in the field of impact finance for climate and equity that are relevant to our ongoing and upcoming projects at D&A.
Here’s a look at the highlights from September - October 2024.
MAJOR EVENTS & INITIATIVES
I. D&A at Prabhav 2024 by the Impact Investor’s Council
Prabhav, recognized as India’s leading event for impact investing, was held on the 12th and 13th of September 2024 in New Delhi. This year’s theme, “Impact Beyond Returns, the India Story,” set the stage for important conversations addressing critical social challenges such as climate action, healthcare, and education, while also diving into strategies to broaden the capital base and mainstream impact investing within private investing.
Aashir Sutar, Vice President & Principal at Desai & Associates, moderated a panel discussion titled ‘Taking Stock – The Journey of Financial Inclusion in India’, alongside industry leaders Aiswarya Ravi (CFO, Kinara Capital), Ameya Bijoor (Partner, Encourage Capital), Rajat Bansal (Director, Lok Capital), and Smriti Chandra (Investment Director, Abler Nordic). The panel provided a comprehensive overview of the evolution of financial inclusion in India, highlighting the progress made, challenges faced, and future prospects. The discussion brought together industry leaders to reflect on key milestones till now and opportunities going forward in the financial inclusion landscape, particularly emphasizing the potential of blended finance to expand access to underserved populations.
Learn more about Prabhav
II. D&A at UNGA 79 and NY Climate Week 2024
Kartik Desai, Founder & CEO of Desai & Associates, returned to New York in September for what he fondly calls his annual homecoming, engaging in a dynamic week at the 79th session of the UN General Assembly (UNGA 79) and New York Climate Week 2024. This visit provided a unique opportunity to connect with leading voices in innovative finance, climate action, and social inclusion at the global level to understand what is happening across the world in different markets and what are the key trends, insights and lessons that can be applied to the development finance landscape in India. One estimate suggests that there were over 5000 events held over 5 days from September 23 and 27, making it difficult to choose where to participate and leading to packed days hopping across Manhattan. Kartik made the choice based on the overlap of three areas - i.e. only attending sessions which are at the intersection of the three priorities - innovative finance, India and climate action.
It was an incredible experience engaging with global leaders, funders, on ground changemakers and development finance experts to discuss how to leverage innovative financial models to address climate issues that affect vulnerable populations across India. Below are some of the key sessions Kartik participated in. We look forward to continuing these conversations in the months ahead, working with our partners to build inclusive, climate-resilient financial solutions for India and beyond.
III. NSDC Convening on Innovations for Youth Employment
Desai & Associates was pleased to attend the Annual Convening on Innovations for Youth Employment with a Focus on Women by our key partner the National Skill Development Corporation in New Delhi, on October 9th. The event brought together stakeholders to explore ways to scale youth employment and skilling initiatives, especially for women. Outcome-Based Finance (OBF) was highlighted as a critical approach to create sustainable, impact-driven skilling initiatives, providing a path to scale programs with measurable results.
One central theme of the discussion was the importance of aligning skilling programs with the growing demand for digital and AI expertise to prepare candidates for emerging job markets. Panelists emphasized that continuous feedback and stronger employer alignment are critical for reducing dropout rates and addressing the skills-to-jobs gap effectively. The event also underscored the importance of empowering women in remote and vulnerable communities, particularly through skilling in non-traditional sectors, which is vital to increasing women’s participation in the formal economy and driving inclusive economic growth.
The emphasis on outcome-oriented, market demand-led skilling programs resonates deeply with D&A’s latest work on designing skilling and employment programs in partnership with NSDC and others that leverage outcome-based financing to support best-in-class skilling ecosystem partners.
To find more about the highlight and results of Skill Impact Bond visit here.
IV. Ashish Dhawan on Equity in Philanthropy
D&A’s latest work on designing and structuring an outcome based financing skilling initiative also align very closely with insights from the work of the Foundation for Economic Development, which aims to facilitate sustained and broad-based economic growth over 10% to improve the lives of all Indians. These insights are very well captured in the recently released podcast “Equity In Philanthropy | FED Dialogues” featuring Ashish Dhawan in conversation with Rahul Ahluwalia. In the podcast, Ashish shares his roadmap for India’s economic growth, emphasizing skilling and labor-intensive exports as key drivers. Key highlights from the conversation:
VI. She Leads Bharat: Access to Credit for Women Entrepreneurs
October saw the announcement of a new initiative in blended finance to support social enterprise. Frontier Markets and the 360 ONE Foundation launched the She Leads Bharat: Udyam initiative to enhance financial access for women-owned small businesses in rural Rajasthan and Uttar Pradesh. Targeting 2,000 women entrepreneurs who are “new to credit,” the program provides zero-interest, zero-collateral returnable grants via Frontier Markets' Meri Saheli app, helping establish credit histories and support income growth.
Alongside financial support, the initiative offers capacity building and market linkages to foster sustainable business development. Returned funds will reinvest into new cohorts, with a portion allocated for a first-loss default guarantee to leverage additional formal capital. This program tackles a key gap in financial inclusion, empowering women entrepreneurs to drive economic growth in their communities. Learn more
LATEST REPORTS & RESEARCH
I. Advancing a People-Centric Energy Transition in Asia Pacific
The recently launched report The People-Centric Energy Transition in Asia Pacific: The Now, The How, and The Future by AVPN and Boston Consulting Group (BCG) brings to light the important social dimensions of the energy transition, emphasizing the need for inclusivity and equitable growth within climate action. Despite rising investment in clean energy, less than 1% of global government energy budgets focus on people-centered solutions—which needs to change.
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Key insights show that a just transition could generate 14 million green jobs by 2030 and unlock substantial cost savings for SMEs, especially in the Asia-Pacific region. The report identifies seven essential actors—including governments, NGOs, DFIs, and private financiers—as crucial to advancing people-centred energy policies. Supported by AVPN’s ASCENT platform, these actors are set to collaborate to drive equitable energy transitions across the Asian region.
II. Gates Foundation: Finance for Climate & Development
The Bill & Melinda Gates Foundation has launched a major new white paper, driving the conversation forward on financing climate and development goals.
Building on their June 2023 publication framework, “Climate and Development Finance: A Transition Framework for All”, this new white paper launched by their global CEO Mark Suzman - "Principles for Allocating Finance for Development and Climate Goals" - outlines practical, actionable steps for aligning financial resources with the most pressing needs of the world’s poorest countries. The analysis in this paper brings to light an important insight - where countries face multiple investment needs and limited financing, there may be a strong case to prioritize investments (different countries should focus on different challenges to maximize impact). For instance, while low-income countries benefit most from targeted investments in agriculture and healthcare to boost resilience, wealthier nations can focus on reducing emissions and advancing technology.
III. Advancing Female Workforce Participation: A Call to Action
In partnership with Bain & Company, Magic Bus India Foundation introduced From Aspiration to Action: Building India's 400 Million Women Workforce, a report highlighting the critical need to address female workforce participation (FLFPR) to drive India’s economic aspirations.
India’s goal of becoming a $30 trillion economy by 2047 hinges on increasing female workforce participation, with women expected to contribute 45% or $14 trillion of the total GDP. The report calls for collaborative efforts to achieve a 70% FLFPR by 2047, marking a significant step toward economic empowerment for Indian women. The report underscores major obstacles to women’s participation in India’s workforce, including high dropout rates among girls in secondary education, socio-cultural barriers, and a lack of safe, reliable transportation for women. Following this analysis, the report proposes solutions and spotlights two key models critical to integrating women into the workforce. Download the full report to discover how the female workforce participation in India can be doubled:
IV. Climate Finance Report Insights by Green Artha
The India Climate Finance Report by Green Artha offers essential insights into India’s climate tech investment landscape. In this edition, Sultan Zelei of Project Frame and Claudia Alejandra Leon highlighted Prime’s research, conducted by Desai & Associates, which explores strategies for directing foreign catalytic capital into India. Key initiatives like Project Frame and the CRANE tool, developed with Rho Impact, are designed to expand access to impact-driven funding resources.
The report also showcases Project Frame’s collaboration with Climate Collective, aiming to unite climate investors to develop GHG impact assessments and case studies on climate solutions for the Global South. Emerging focus areas include sustainable mobility, waste management, and water hygiene, with notable interest from new investor groups in sustainable investments—reflecting a growing recognition of climate tech as a vital investment domain.
V. Guide to Enabling the Zero-Emission Trucking Transition in India Using Blended Finance
India’s transition to Zero-Emission Trucks (ZETs) is gathering momentum, with support from targeted financing solutions outlined in Rocky Mountain Institute’s latest report. As ZET adoption faces challenges due to high initial costs, the report recommends strategies like concessional debt, viability gap funding, and loan guarantees to bridge the cost gap between ZETs and diesel vehicles. These financial tools not only make ZETs more affordable but also aim to establish ZETs as viable investments in India's logistics sector.
While ZETs currently come with a 20-30% higher cost compared to diesel trucks, RMI’s analysis shows that financing interventions could reduce ZET costs, offering up to a 3% Total Cost of Ownership advantage. This comprehensive approach provides a clear roadmap for accelerating ZET adoption, paving the way for a cleaner, more sustainable logistics ecosystem in India.
VI. GIIN Report on Impact Investing Market
The Global Impact Investing Network (GIIN) released its annual state of the sector report for impact investing at its annual conference held in Amsterdam on October 23-24. GIIN estimates that over 3,907 organizations currently manage $1.571 trillion USD in impact investing assets under management (AUM) globally, representing 21% compound annual growth of the total impact investing market since 2019.
The release of the report, ‘Sizing the Impact Investing Market, 2024’ was celebrated at the GIIN Forum 2024 which also saw active participation from investors from India facilitated by the Indian Impact Investors Council and its “India Room” initiative . The robust growth of the impact investing market globally and in India reflects a rising commitment to achieving social and environmental goals. The report indicates strong portfolio growth, with large investors driving capital expansion across impact-focused sectors, demonstrating that impact investing is gaining mainstream acceptance.
We hope you enjoyed reading the second edition of the D&A Monthly Round-Up!
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