Clifford Chance Advised Asian Development Bank on Financing for Carbon Offset Project in India
Clifford Chance Advised Asian Development Bank on Financing for Carbon Offset Project in India
Clifford Chance has provided legal counsel to the Asian Development Bank (ADB) in connection with its US$6.5 million senior secured financing to SDG 13 Ventures Pte Ltd (SDG 13), a subsidiary of Greenway Grameen Infra Private Limited (Greenway). This financing supports the development of a carbon offset project in India, specifically the production and distribution of 1 million improved cookstoves to rural households in Madhya Pradesh and Odisha states. The financing is further complemented by a US$3.25 million first-loss liquidity reserve facility provided by the Climate Innovation and Development Fund, administered by ADB.
The project aims to reduce 22.9 million tons of carbon dioxide by subsidizing and distributing 1 million improved cookstoves. Greenway, through SDG 13, will then generate and sell carbon credits derived from the cookstoves' use to international buyers, contributing to both climate change mitigation and rural development.
Clifford Chance assembled a cross-border team spanning Singapore, London, Tokyo, Washington DC, and New York to provide comprehensive legal counsel on the project's due diligence and financing. Partner Nicholas Wong orchestrated the transaction execution, while counsel Mel Chan spearheaded the financing efforts, supported by senior associates William Holmden and Desmond Ng and associate Jasmine Wong. Partner Nigel Howorth and associate Alex Madafiglio led the due diligence process, offering valuable insights into the voluntary carbon market landscape. Additional expertise was provided by partner Janice Goh (data privacy), partner Matthew Warner and counsel Catherine Ennis (Verra and VCU compliance).
“We are delighted to have advised ADB on this important transaction, applying our cross-border and cross-practice expertise to help them mitigate the impacts of climate change through their support of this carbon reduction project while promoting rural development and food security in these locations in India.” Nicholas Wong said.
Looking ahead, Wong expressed his confidence that this successful transaction will serve as a catalyst for further innovative and impactful sustainable carbon financings in the years to come. He further emphasised the importance of fostering closer collaboration between the private sector and multilateral institutions in this critical area.
This transaction further strengthens Clifford Chance's established collaboration with ADB in the sustainability sphere, adding to a series of impactful projects, including its involvement in Vietnam's first certified green loan for the country's largest single-operating solar power plant and its recent advisory role on the 1,022MW Hai Long offshore wind farm project in Taiwan.
