Ministry of Foreign Affairs of Denmark Danida

Concept Note
Establishment of SDG Investment Fund
22 November 2016

File No.: 2016-13097

Table of Content
Abbreviations 2
1. CONTEXT 3
1.1 Background 3
1.2 Policy framework 3
1.3 Justification of the envisaged support 4
1.4 Key experience and results of previous support to consider for future support 4
2. PRESENTATION OF THE PROGRAMME 5
2.1 Objectives 5
2.2 Theory of change 6
2.3 Strategic considerations 6
3. LEGAL, INSTITUTIONAL AND FINANCIAL 7
3.1 Legal, institutional financial structure of the Fund 7
3.2 Budget 9
3.3 Risks 9
ANNEXES 10
Annex 1: Process Action Plan 10
Annex 2: SDG Investment Fund - Results Framework 11
Annex 3: SDG Investment Fund - Risk Management Matrix 15
Annex 4: SDG Investment Fund - Environmental and climate screening note 18
Annex 5: SDG Investment Fund - HRBA/Gender screening note 22

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Abbreviations

DAC Development Assistance Committee

DAF Danish Agribusiness Investment Fund

DBF Danida Business Finance

DFI Development Finance Institution

DKK Danish Kroner

FMO The Dutch DFI

IFI International Finance Institutions

IFU Investment Fund for Developing Countries

KFU Technical and Quality Support department of the Ministry of Foreign Affairs

KfW The German development bank

KIF Danish Climate Investment Fund

LDC Least Developed Countries

LMIC Lower Middle Income Countries

ODA Overseas Development Assistance

OECD Organisation for Economic Cooperation and Development

PPP Public Private Partnership

SDG Sustainable Development Goal

SME Small and Medium Enterprise
VBE Growth and Employment department of the Ministry of Foreign Affairs

UN United Nations
UNCTAD United Nations conference on Trade and Development
UNFCCC United Nations Framework Convention on Climate Change

USD United States Dollars

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1. CONTEXT
1.1 Background
The Government plans to establish a new Public-Private-Partnership (PPP) investment fund, to be
managed by the Investment Fund for Developing Countries (IFU), which will contribute to the
mobilisation of private capital for the financing of investments in support of the Sustainable
Development Goals (SDG). Allocations for the proposed fund and IFU are included in the 2017
Finance Act, and this allocation is envisaged to be complemented with additional appropriations in
2018 and 2019.1 The allocations are envisaged to be complemented by state guaranteed financing
instruments to further increase the mobilisation of private capital for the fund.2 The private capital will
be mobilised from Danish institutional investors and private companies that together with IFU will
participate in SDG related impact investments in developing countries.
The investments required to achieve the SDGs are enormous. UNCTAD estimates that the total SDG
investment needs in developing countries are in the order of USD 3.3 – 4.5 trillion per year, and
projections based on the current public and private investment levels indicate a financing gap of USD
2.5 trillion annually. The main financing gaps are related to infrastructure (energy, transport,
telecommunication, water and sanitation), climate, agribusiness and food security, health and education.
Official Development Assistance (ODA), currently estimated at USD 132 billion, will only be able to
cover a small part of this financing gap. International organisations and forums like OECD, World
Economic Forum and the 2015 Addis conference on financing for development, have therefore
emphasised that donors strongly need to expand the use of blended finance instruments based on PPP
arrangements which can reduce the risks of private investors and hereby contribute to the mobilisation
of substantial private capital, technology and knowhow for sustainable and inclusive impact
investments in developing countries.3
The above SDG funding gap is first of all due to the fact that a very significant part of the required
development investments cannot attract private funding because the actual or perceived risk is too high
or the estimated return is too low. However, such investments would often be suitable for PPP and
blended finance arrangements where donors and public stakeholders contribute with diplomacy, risk
coverage etc., in order to facilitate that private investors can obtain a more predictable and acceptable
return on their part of the impact investments. The return that private investors are aiming at depends
on the fund structure, the type of investment etc. and may vary from a few percentages in loan capital
investments to a significant higher percentage in more risky equity investments. Donors therefore need
to focus much more on how to catalyse development assistance by means of various blending
mechanism that can promote the mobilisation of private companies and institutional investors and
hereby generate additionality in impact investments. Private companies and institutional investors in
Denmark and abroad are also increasingly committed to participate in blended finance arrangements
which can facilitate access to new markets, generate profit opportunities, and contribute to sustainable
economic and social development.
1.2 Policy framework
The proposed SDG Investment Fund (Fund) is fully in line with the Danish and international policy
framework concerning the promotion of PPP based financing arrangements that can catalyse the
mobilisation of private capital, technology and know-how for inclusive and sustainable investments in
SDG key sectors such as energy, food, industry etc. This should e.g. be done through the use of

1 A 2017 Finance Act equity contribution of DKK 200 million to IFU and IFU’s new strategy will be presented in a separate
concept note.
2 The guarantee options and modalities are under consideration by the Ministry of Finance
3 OECD and World Economic Forum define blended finance as: “The strategic use of development finance and

philanthropic funds to mobilise private capital flows to emerging and frontier markets”. OECD and World Economic
Forum: Redesigning Development Finance Initiative, Blended Finance Vol.1: A Primer for Development Finance and
Philanthropic Funders, September 2015.

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innovative instruments like state guarantees which can a) facilitate more public sector engagement
without direct cash contributions and b) catalyse private sector participation through risk mitigation.
Other donors like EU, the Netherlands, Germany, Sweden and US have during the last years developed
various state guarantee instruments for the mobilisation of private sector participation in development
activities. The Danish development policies further emphasises the importance of strengthening IFU’s
investment capacity in order to better pursue the PPP based impact investment needs and
opportunities in developing countries.
1.3 Justification of the envisaged support
The proposed Fund addresses particularly the huge investments needed to achieving the SDGs in
relation to food security, infrastructure including sustainable energy, climate, industry, employment,
access to finance etc. which are essential for households and business and hereby for both economic
and social development. A large percentage of poor households and micro, small and medium
enterprises (MSME) in developing countries have inadequate access to infrastructure including
electricity etc., which hampers their daily performance and conditions and leads to societal losses. The
climate changes leads increasingly to land degradation and natural disasters which causes economic
losses, food shortage and displacement of people.
The Fund will contribute to the mobilisation of substantial private capital, technology and knowhow
through an innovative PPP and blended finance arrangement where a significant part of the private
capital mobilisation will be based on state guarantees. Various international studies conducted by
OECD etc. indicate that public guarantees can be a very effective instrument for the mobilisation of
private capital for investments in developing countries. The Fund will have focus on equity
investments, which are strongly needed in developing countries, and which can catalyse the
mobilisation of additional private equity and loan capital from Danish, international and local sources.
A number of international development studies have confirmed the importance of working with and
through the private sector in order to effectively address key development challenges and generate
economic and social sustainable development. If adequate investment conditions are available, then the
private sector can significantly contribute with the needed capital, know-how and technology in relation
to the required investments. These investments can stimulate sustainable economic and social
development through the provision of infrastructure, goods and services and the generation of income,
jobs, tax revenue etc. Private investors and companies are to an increasing extent transitioning to
responsible investment, because sustainable business strategies can improve market opportunities,
reputation, profitability etc., and the prospects for donors to work with and through the private sector
are therefore better than ever. However, investments in developing countries are still associated with
major risks due to a challenging business environment caused by various factors such as an inadequate
regulatory framework, inadequate infrastructure, inefficient market systems, shortage of skilled labour,
corruption etc. Private investors therefore normally consider the perceived or real risk too high and/or
the return too low to engage in responsible investment in developing countries. PPP and blended
finance initiatives can substantially mitigate these risks and promote additional SDG investments
without distorting well-functioning markets.
1.4 Key experience and results of previous support to consider for future support
Danida has in recent years expanded its blended finance activities through various commercially
oriented investment funds with a thematic (energy, climate, agribusiness, SME), or a regional/national
scope. The blended finance arrangements are partly established together with IFU and Danish
institutional investors and partly together with other donors, development finance institutions and
private investors. The preliminary lessons learned from these blended finance arrangements have
generally been positive, not least the blended finance arrangement with IFU and Danish institutional
investors which have generated promising results, positive international attention, and a solid mutual
understanding and confidence between the involved parties. The Danish institutional investors are
committed to further develop and expand the blended finance arrangements, but they have at the same
time indicated the following issues:

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 a) The size of future blended finance investment funds should be substantially scaled-up, both in
terms of the size of the fund (preferably an increase by a factor 4-5) and the size of the
individual investment projects, in order to better exploit opportunities and reduce transaction
costs.
b) The thematic scope of future investment funds should be considerable broader than the Danish
Climate Investment Fund (KIF) and the Danish Agribusiness Investment Fund (DAF) in order
to ensure larger investment flexibility, a larger investment portfolio and better risk
diversification.

The preliminary lessons learned further indicate that the following issues need to be considered:

c) The fund should preferably have a more flexible structure that facilitates investor entrance and
exit.
d) The fund should preferably have access to a broader mix of complementary financial products
in order to be able to better address relevant investment opportunities. These complementary
financial products could include various loans and risk insurance products.
e) There is a general shortage of bankable investment projects in developing countries, and there
is a need to strengthen Danish and international project development capacity. It is important
that the Fund will have access to a satisfactory pipeline of bankable projects.

The issues described under a), b), c) and d) have been addressed in relation to the Fund proposal. Point
e) has in 2016 been addressed through an appropriation to IFU for the implementation of a
commercially based project development programme.

2. PRESENTATION OF THE PROGRAMME

2.1 Objectives
The overall objective of the Fund is to:
Contribute to the achievement of the SDGs in developing countries by enhancing development relevant, inclusive and
sustainable investments in affordable and clean energy, climate, industry and infrastructure, water and sanitation, food
production and other SDG key areas through the mobilisation of Danish and foreign public and private capital,
technology and knowhow.
The Fund will be based on a PPP which will promote the mobilisation of substantial private capital for
impact investment in developing countries. The SDG fund is planned to have a size of DKK 2.5 to 3
billion which will be matched by IFU. This means that total investment capacity including IFU’s
contribution would be DKK 5-6 billion. The capital will be invested over a 3 year period. The
investments of the funds will promote the mobilisation of additional capital from other sources by an
estimated factor 7 meaning that the Fund and IFU in total will promote investments of an estimated
DKK 30 billion. The key results of the Fund will be the financing, implementation and management of
about 50 SDG relevant and sustainable investment projects in developing countries. The investment
projects of the Fund will be assessed in terms of both financial return and expected development
outcomes, and the expected development outcomes will be a key guiding principle of the Fund.
The Fund will significantly contribute to the achievement of several of the SDGs through the
implementation of substantial investments that would otherwise not take place or only at a much lower
scale and pace. The indicated outcomes of the fund, which are estimated on the basis of historic IFU
records from a large number of investments, include: Total mobilisation of DKK 30 billion of private
capital, the creation of about 30,000 direct jobs and an additional 30,000-60,000 indirect jobs, a
comprehensive installation of renewable energy measured in MW, a comprehensive reduction of
greenhouse gas emission from sustainable energy investments based on a conservative estimate of

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about 4,100 tons CO2 equivalent/invested DKK 1 million during the lifetime of the investment, annual
tax contribution from investment projects to public authorities, transfer of modern technology and
knowhow. The Fund’s contribution to sustainable development will be carefully assessed. IFU has
adopted a number of sustainability policies and procedures including the UN Global Compact, the UN
guiding principles for business and human rights, and other relevant international standards for
investments and business activities in developing countries. IFU reports work on sustainability as part
of the financial annual report. IFU has a sustainability advisory board composed of external
stakeholders within environment, human rights, development and company policies. Further details on
the results framework, reporting and IFU’s ambitious Development Impact Model are provided in
Annex 2 (Results Framework).
2.2 Theory of change
At the overall level the Theory of Change behind the Fund can be described as follows: The
achievement of the SDGs in developing countries is challenged by a huge financing gap which cannot
be covered by ODA. Donors therefore need to facilitate the involvement of private investors through
various forms of risk coverage initiatives that can reduce the actual or perceived risks and hereby ensure
that the private investors can obtain a more predictable and acceptable return. If donors, including
Danida, expand the use of PPP-based blended finance engagements which can lower the risk of private
investors, then it will be possible to contribute to the achievement of the SDGs through mobilisation
of substantial private capital, technology and knowhow for inclusive and sustainable impact investment
in developing countries.

Inputs Outputs Outcomes Impact

Public and private A number of Generation of
investment capital sustainable decent jobs
investment projects in Contribution to the
Know-how, advice, DAC countries and Resilient
technology achievement og the
within various infrastructure SDG and climate
Management and thematic areas
Access to affordable targets
monitoring
and clean energy
Reduction in CO2
Responsible
production
Generation of tax
income

The theory of change is based on a number of assumptions including: a) that the political and economic
context globally and in DAC countries remains relatively stable, b) that the institutional investors and
private companies are committed to participate, c) that it is possible to establish a satisfactory balance
between development objectives and commercial objectives in relation to the investments, and d) that
the Fund will have access to a satisfactory pipeline of bankable projects.
2.3 Strategic considerations
The design of the Fund is based on a number of strategic considerations of which the following should
be mentioned:
Development capital as an asset: The capital invested by the Danish state should be considered as
development capital assets that are envisaged to generate a return. The accumulated capital will, once
the fund has exited from its investments, be reinvested in similar PPP based development activities.

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Capital contribution of the Danish state: It would be difficult for the Danish state and IFU to mobilise the
required capital from the development budget and IFU’s own capital base. The capital mobilisation of
the state/IFU is therefore partly based on guarantee instruments.
Financial products: The majority of Fund’s capital is expected to be used for equity investments. Equity
capital is strongly needed and is fundamental for the mobilisation of additional capital from other
sources. The remaining capital will be used for loan capital investments. It will further be considered to
apply political risk insurance in relation to the investment portfolio.
Thematic scope: The thematic scope of the Fund will be much broader than KIF and DAF in order to
ensure larger investment portfolio and flexibility, and better risk diversification. However, certain
minimum and maximum targets for the portfolio distribution by thematic/sectoral area will be
elaborated. It is e.g. envisaged that 30-40% of the Fund’s capital will be invested in sustainable
energy/climate. The other principal thematic areas are envisaged to be agribusiness, industry,
infrastructure and finance. The Fund will not compete with KIF and DAF which are envisaged to have
largely invested their capital when the Fund is launched.
Lifetime of the Fund: Private equity funds are typically working with illiquid investments, and the funds
are therefore close-ended to secure the exit of the investors. It is considered to reduce the lifetime of
the fund in order to improve investor flexibility and establish successive close-ended funds. When the
fund is fully invested after a 3 year investment period, a successor fund will be established with new
commitments from private investors, and it is the intention to repeat this system onwards to create a
succession of SDG funds. The set-up of successive funds will facilitate entrance and exit of the
institutional investors compared with a larger fund with a much longer investment horizon.
Eligible investors: The Fund is envisaged to be based on IFU’s legal mandate. IFU’s mandate is expected
to become untied with effect from 1st January 2017. It is envisaged that Danish investors and
companies in general would benefit from the untied IFU mandate as it will open up for new
international cooperation and investment opportunities.
Eligible countries: The Fund can according to IFU’s mandate invest in countries that are registered on the
OECD/DAC list of ODA recipients. However, at least 50% of IFU’s investments must be made in
countries with a GNI per capita below the 80% of the upper limit of Lower Middle Income Countries
(LMIC)4 measured at a 3 year moving average. This means that 50% of the investments must be made
in LMICs and the Least Developed Countries (LDCs).
Leverage and additionality: A key purpose of PPP based impact investment funds is to use donor funds as
leverage for the mobilisation of private capital and ensure that the investments provide high
additionality. The Fund will therefore have focus on leverage and additionality. There will be no clear
defined targets for the leverage factor which depends on the type of investments, country context, risk
issues etc., but the leverage factor will be assessed. Similarly additionality will be assessed in qualitative
terms in order to ensure that the PPP generates relevant investments and outcomes that would
otherwise not have been achieved or achieved in a much less ambitious way.

3. LEGAL, INSTITUTIONAL AND FINANCIAL

3.1 Legal, institutional financial structure of the Fund
It envisaged that the SDG fund will be structured as part of a broad parallel structure where IFU and
the SDG fund each will finance 50% of the underlying portfolio investments. Private investors will
participate through the SDG fund.

4 Countries with a GNI per capita of less than USD 3,300 (80% of the upper limit of LMIC

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The exact model will be developed and agreed in dialogue with the institutional investors. Other
structures will be considered and the State’s and IFU’s share of the financing may be partly or wholly
invested through the SDG fund.
Legal structure: The legal structure of the SDG fund will be based on the one already known from KIF
and DAF: A Danish limited partnership (kommanditselskab) with a general partner (komplementar)
and the investors as limited partners (kommanditister). This form of entity ensures both that the
investors are not subject to double taxation (the limited partnership is tax transparent, so the investors
are taxed as if they had made the investments directly) and that their liability is limited to the amount
invested in the fund.
Capital structure: The SDG fund’s capital will consist of capital commitments from the investors that can
be called successively as investments are made. The SDG fund will invest the committed capital during
a 3 year investment period. After this period, the SDG fund will over the next 9 years gradually exit the
investments. All cash received by the SDG fund will be distributed pro rata to the investors as it is
received by the SDG fund. The overall performance of the SDG fund can only be finally calculated
when the fund is fully exited and all cash has been returned to the investors.
Governance: IFU will be fund manager of the SDG fund. The institutional investors are envisaged to
have a role in approving the investments, either through separate corporate bodies or through
participation in IFU’s board of directors. IFU has a sustainability advisory board composed of external
experts, and IFU has in recent years expanded its cooperation with civil society organisations.
Reporting: Quarterly financial reports will be provided to the investors of the SDG fund. An audited
annual report for the SDG fund will be prepared and audited by IFU’s external, independent auditor.
IFU reports work on sustainability as part of the financial annual report.
IFU and state capital: To finance IFU’s share of the investments new capital will be required for IFU.
This will ensure that IFU can match the SDG fund thereby enabling the mobilisation of private capital
to that fund. The funding of IFU is envisaged to be a mix of equity contribution from the state and
debt financing. The debt allocation is envisaged to be supported by a state guarantee. The capital of the
fund will mainly be used for equity investments, which are strongly needed in developing countries, and
which can catalyse the mobilisation of additional private equity and loan capital from Danish,
international and local sources. Any losses on the guarantee are unlikely as IFU has a solid track record
for investments in developing countries based on a diversified portfolio of around 200 investments.
Average gross returns for the last five years have been 12.3 % on share capital investments and 3.6 %
on loans. Weighted average gross return is 9 %.

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3.2 Budget
The funding of IFU is envisaged to be a mix of equity contribution and debt financing. The 2017
Finance act proposal allocates DKK 100 million for equity directly to the fund and DKK 200 million
for general equity contribution to IFU. These allocations are envisaged to be complemented with
additional appropriations in 2018 and/or 2019. In addition to these contributions debt financing
supported by state guarantees will be provided.
The indicative budget for commitment to the Fund may be as indicated below (DKK million):

Total

Danida (contributions to SDG fund and general 300

equity contribution to IFU)

Additional equity contributions from Danida or 800

IFU debt finance based on state guarantees

IFU resources 1,600

Total financing of state capital 2,700

Institutional investors 2,700

Grand total 5,400

The Fund is envisaged to be launched at the beginning of 2018. The capital is envisaged to be invested
from 2018 – 2020, and the exit period is expected to be 8-10 years.
3.3 Risks
Investments in developing countries are generally associated with a relatively high perceived and real
risk, not least for medium- and long-term investments which are expected to constitute the majority of
the portfolio under the Fund. Political and economic conditions may be turbulent. A risk management
matrix is presented in Annex 3. The matrix presents the main contextual, programmatic and
institutional risks in relation to the Fund. However, it has to be emphasised that the risk management
matrix at this stage only provides a very generic presentation of the various risk factors. The specific
risks and the measures to manage these risks can only be assessed in relation to the specific investment
projects and the related country and business context.
IFU has a set of well-developed risk policies and guidelines to minimise the overall risks in its project
portfolio. These policies include guidelines for appraisal of commercial risk, for project, partner and
country risk exposure as well as guidelines for managing direct financial risks. It is envisaged that the
broad geographical and thematic SDG approach with investments across regions, sectors and
subsectors will spread and mitigate the risks related to investments under the Fund.
Financial losses on the investment portfolio are unlikely based on IFU’s past experience. The
calculation of profit and loss will be based on the entire Fund portfolio and finally calculated at the
completion/close of the fund. To further reduce risks, options for the establishment of political risk
insurance on the Fund portfolio are being considered. Political risk insurance may comprise civil unrest,
war, expropriation, breach of contract, foreign currency restrictions.

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ANNEXES
Annex 1: Process Action Plan
Time line Activity Documentation Responsible
24 November 2016 Concept Note finalised and delivered to Concept Note VBE/IFU/MEFK
KFU
24 Nov. – 7 Dec. 2016 Concept Note in public hearing Concept Note KFU
15 December 2016 Programme Committee Meeting Minutes from KFU/VBE
meeting
End January 2017 Draft Project Document including Draft Project VBE/IFU/MEFK
quality assurance Document
February 2017 Workshop with external stakeholders Minutes from VBE/IFU
interested in the Fund workshop
End of March 2017 Formulation and quality assurance Final Programme VBE/IFU/MEFK
process completed Document
Beginning April 2017 Project document with appropriation Final Project VBE/KFU
cover sheet delivered to KFU Document and
additional
documents
End of April 2017 Grant Committee Meeting Minutes from KFU
meeting
May 2017 Presentation to the Minister Signature KFU
September 2017 Completion of guarantee agreement and Legally binding MFA/MF/IFU
related loan agreement agreements
October 2017 Signing of administration agreement Legally binding VBE/IFU
with IFU agreements
December 2017 Completion of agreement between IFU Legally binding IFU/private
and private investors agreement investors
January 2018 Public launch Minutes from VBE/IFU
launch
January 2018 Effective start of Fund Disbursement VBE/IFU

Formulation and quality assurance

It is suggested that the SDG fund proposal be exempted from the normal appraisal procedures. The
main reasons are that the proposal to a large extent is based on similar interventions (KIF and DAF)
and that the responsible department (Growth and Employment - VBE) has good technical capacity
within the area of the support. However, VBE would like to establish a quality assurance group with
specialists from Technical and Quality Support (KFU) and VBE in order to discuss key quality
assurance issues connected with the formulation of the support. The group should meet regularly
during January – March 2017. The issues to be discussed should include:

 The overall strategic approach and related development priorities and issues including
inclusiveness, sustainability, gender orientation etc.
 The results framework, results measurement and reporting according to international standards
 Specific budgeting, accounting and reporting issues in relation to capital mobilised on the basis
of guaranties
A more specific PAP for the process will be established with the quality assurance group.

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Annex 2: SDG Investment Fund - Results Framework

Thematic Title of Fund SDG Investment Fund

Development objective Contribute to the achievement of the Sustainable Development Goals and the Paris Climate Agreement in
of Fund developing countries by enhancing relevant and sustainable investments in affordable and clean energy, food
production, industry and infrastructure, water and sanitation, and other SDG key areas through the
mobilisation of Danish and foreign public and private capital, technology and know-how.

Impact Indicators The impact of Fund will be determined on the basis of the individual investment projects
which will be implemented across countries and sectors. The impact indicators will include
employment generation, reduction in greenhouse gas emission, the total mobilisation of
additional investment capital for developing countries and the specific mobilisation of capital
for climate investments, sustainability and financial performance.

Engagement Title of Same as the Thematic Title of the Fund: SDG Investment Fund
Fund

Outcome indicator Generation of direct and indirect jobs, reduction in greenhouse gas emission, the total
mobilisation of additional investment capital for developing countries and specific
mobilisation of capital for climate investments, sustainability initiatives and financial
performance

Baseline Year When a new investment project is initiated, an ex-ante baseline based on the indicators selected by the
Fund/IFU will be prepared. This will be followed-up with annual reporting for selected indicators as well as
an ex-post assessment at exit. A Final Evaluation Report will be prepared for each project.

Target Year The targets of the SDG Fund are based on recorded or estimated outcome of IFU past and ongoing portfolio of
investment projects56785

2030 Targets of the SDG Fund

Mobilisation of capital: DKK 5-6 billion by the Danish state/IFU (50%) and Danish
institutional investors (50%). Total capital mobilisation, including capital from other private
sources, is estimated at DKK 30 billion

Indicative thematic breakdown of investment portfolio: Climate/sustainable energy: 30 to

40 %; industry: 10 to 20%; water & sanitation: 0 to 10%; agriculture and food: 10 to 20%;
infrastructure 20 to 30% and financial sector 10% to 20%.

Expected total number of jobs created: 8000 direct jobs per one billion DKK invested, out
of which at least 35% will be women and 10% will be youth. 12.000-16.000 indirect jobs 9 10.

5
Historic (1995-2015) average generation of direct and indirect full time job per invested DKK 1 million by IFU or IFU
managed funds (all sectors): Direct jobs: 8.8, indirect jobs: 15.4.
6Historic (2014-2015) recorded/estimated lifetime average greenhouse gas mitigation (CO 2 equivalent) per invested DKK 1
million in climate/sustainable energy: 4124 tons CO2 eq/invested DKK million by DCIF (NB very few projects).
7 IFU has a solid track record for investments in developing countries based on a diversified portfolio of around 200
investments. Average gross returns for the last five years have been 12.3 % on share capital investments and 3.6 % on loans.
Weighted average gross return is 9 %.
8 Historic (2012-2015) recorded leverage factor for private capital on IFU investments: Fa ctor 7x
9 Historic data (2013-2015) of average percentage of female employees is 37% and youth employment is 7%. By direct job
is meant full time equivalent jobs created in an enterprise/project due to the Fund’s investment.

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 Total reduction in greenhouse gas emission (CO2 equivalent): 4.000 tons CO2
equivalent/invested DKK one million in climate projects /energy production

Tax contribution: Total local tax contribution (corporate tax) payments to government /
public authorities from investment projects recorded annually during each financial year.

IRR: The Fund’s investments are expected on average to achieve an IRR of not less than 8-
12% (gross).

Leverage: Total mobilisation of additional private financial resources for developing

countries is expected to be up to 15 times the state’s contribution: For example if the state
invest DKK one billion this will be matched by an investment of DKK one billion from
institutional investors through the SDG fund. These two billion will be invested into
portfolio investments where another 14 billion is expected to be mobilised from other private
investors.

Additionality: Additionality will be assessed according to IFU Development Impact Model.

Financial additionality cannot be calculated. International organisations including OECD are
currently discussing additionality definitions, and IFU will consider the outcome of this work.

Sustainability policies (as defined in the IFU Sustainability Policy) implemented at

international standards in Fund investment project.

Collection of data for additional indicators to be used for internal management and
monitoring will follow the Development Impact Model (DIM).

It is the expectations that all projects funded by the SDG fund will be marked with one
principal SDG goal contributions and up to three significant SDG goal contributions using
the OECD/DAC Rio policy marker methodology here applied in the context of the 17
Sustainable Development Goals.

Methodology and standards for result measurement and reporting

IFU’s Development Impact Model has been developed taking the experience harnessed in the International Finance
Institutions harmonized approach HIPSO into account:
HIPSO is a joint impact measurement system initiated by major International Finance Institutions (IFI’s). In 2013, 25 IFIs
signed a memorandum to ease the reporting burden on shared private sector clients and facilitate learning from each other.
Together, these organizations created a harmonized set of 27 core indicators named Harmonized Indicators for Private
Sector Operations (HIPSO) for 12 different sectors. The full memorandum and results indicators are available for download
on the HIPSO website. Fifteen of the 27 core indicators are aligned to IRIS of the Global Impact Investing Network. The
governance and evolution of the 27 indicators remains with the IFI Working Group.
As with other indicators, it is important to state that interpretation of these metrics must be complemented with an analysis
of the context in which a company is evolving, and can change over time. Stand-alone numbers cannot by themselves
indicate positive or negative social value, or necessarily be compared across companies or products.

IFU’s Development Impact Model methodology

The DIM model will be operated by IFU’s investment officers through the ODIN database user interface. The DIM model
will rely on manual entry of some data into ODIN and automatically import baseline information calculated on other
indicators. The DIM model will also include automatic rating of indicators based on the empirical thresholds and automatic
rating of indicator group and project based algorithms. The DIM will work in an integrated way so that key figures are sent
into relevant templates for IFU decision making. The database will enable compilation of project specific reports as well as
data extraction across projects on specified indicators. The DIM model will work through data collection at three distinct
stages Ex-ante, Ex-post and annual monitoring:

Ex-ante targets and Ex-post observations and comparisons

10By indirect job is meant jobs created in related enterprises, e.g. upstream or downstream a concerned value chain. Empiric
data indicates that indirect jobs are expected to be generated at least at a factor 1.5-2 but this is highly variable according to
country and sector.

12
The ex-ante targets are the expected outputs/outcomes of the investment project. In some cases the numbers reported here
turns out to be either optimistic or underestimate what is really going on when the investment project set into motion. The
ex-ante numbers are used for the decision making at Binding Commitment stage. The ex-post numbers will be recorded in
connection with the Final Evaluation Report (FER) to be filed at the end of the investment project.

Annual monitoring

The annual monitoring will capture the actual numbers for a given year. The annual DIM monitoring sheet will be filled-in
connection with the annual sustainability reporting sheet and numbers filed in the IFU’s ODIN database. The annual
monitoring will capture an initial high employment during construction and establishment followed by a lower number of
staff in the operational phase of a given project.

All projects receiving a binding commitment in 2016 will be entered into the DIM and the system is expected to be fully
operational from January 2017 thus replacing the former Success Criteria Model (SCM) operated by IFU for the last twelve
years.

Indicator on climate

The CO2 emissions mitigated is an indicator of the positive climate-related outcomes of the investment. Reduction of CO 2-
eq is measured as mitigated CO2-eq emissions during a project lifetime per invested DKK one million by the fund. Savings
in CO2-eq. emissions is defined in relation to a baseline scenario. The baseline scenario may either reflect the case without
the project or the most likely alternative scenario. The mitigated CO2 emissions is a measure of IFU’s contribution to SDG
9: Industry, Innovation and Infrastructure and SDG 13: Climate Action. The source of information for this indicator is
received from calculations by independent consultancy.

This indicator on climate is aligned to the joint IFI harmonized approach to GHG accounting, the GHG accounting
protocol and the UNFCCC.

Indicator on employment

Direct employment is an indicator of the number of people that benefit directly from the project’s activities. It is tracked to
confirm that the expected direct employment after investment is realised. It is tracked as number of employees (as per local
definition) working for the project company at the end of the reporting period. This includes directly hired individuals and
individuals hired through third party agencies as long as those individuals provide on-site services related to the operations
of the project company or the project. Also, this includes work by seasonal, contractual and part time employees (excluding
construction workers). Direct employment is a measure of IFU’s contribution to SDG 1: No Poverty and SDG 8: Decent
Work and Economic Growth. Documentation for employees is received once a year from the project company.

Female employment is an indicator of the number of women that benefit directly from the project’s activities. It is tracked to
confirm that the expected direct female employment after investment is realised. It is tracked as the number of female
employees working for the project company at the end of the reporting period. Documentation for female employees is
received once a year from the project company. Female direct employment is a measure of IFU’s contribution to SDG 5:
Gender Equality.

Youth employment is an indicator of the number of young people that benefit directly from the project’s activities. It is tracked
to confirm that the expected direct youth employment after investment is realised. Number of youth (defined as under 25
years) employees working for the project company at the end of the reporting period. Documentation for youth employees
is received once a year from the project company.

Unskilled employment is an indicator of the number of unskilled people that benefit directly from the project’s activities. It is
tracked to confirm that the expected direct employment of unskilled labour after investment is realised. It is tracked as
number of unskilled employees working for the project company at the end of the reporting period. Unskilled workers are
defined as those carrying out work involving simple operation that requires little or no skill, experience or education level
higher than primary education on the job. Unskilled employment is a measure of IFU’s contribution to SDG 1: No Poverty,
SDG 8: Decent Work and Economic Growth and SDG 10: Reduced Inequalities.

The employment indicator used is aligned with the HIPSO terminology.

Indicator on additional financial resources mobilised

Based on the historical leverage ratio a realistic estimate for future resource mobilisation can be calculated. Leverage is the
ratio of the states and IFU’s investment to total investment. It is tracked to confirm that the expected catalytic role after
investment is realised. Total financial resources mobilised is a direct measure of IFU’s contribution to SDG 17: Partnership
for the Goals.

13
The financial resources mobilised indicator is aligned with HIPSO terminology.

14
Annex 3: SDG Investment Fund - Risk Management Matrix

Contextual risks

Risk Factor Likelihood Background to Impact Background to assessment to Risk response Combined
assessment of potential impact residual risk
likelihood

Possible global Possible A certain financial Major
financial instability turbulence and
and economic slow- economic slow-down
down. triggered by a global
political or financial
crises.
Political and/or Likely During recent years Major
financial instability in political and financial
individual countries turbulence have taken
limiting Foreign place in many
Direct Investments. developing countries.
A global economic slowdown may
limit Danish companies’ ability and
willingness to invest in ventures in
developing countries. This was also
the case during the global financial
crises.
Political or financial turbulence in a
country could have a major
negative impact on the Fund’s
investments.
A thorough involvement of IFU in Minor
the preparation and implementation
of the investment portfolio. IFU has
extensive experience with assessment
and mitigation of risk parameters
when investing in developing
countries.
The Fund will have broad Minor
geographical coverage and therefore
not be heavily exposed to any single
countries. IFU will try to mitigate
consequences concerning ongoing
projects, whereas new investments
will only be made if sufficient risk
mitigation is in place.

Programmatic risks

Risk Factor Likelihood Background to Impact Background to assessment to Risk response Combined
assessment of potential impact residual risk
likelihood
Lack of interest Possible Danish enterprises may Major If Danish investors and enterprises A broad geographical and thematic Minor
and/or capability by be reluctant towards loose interest or capability to invest approach will limit the risk.
Danish investors and investing in developing in developing countries it could be Assistance in project preparation
enterprises to invest countries, particularly difficult for IFU to achieve the from IFU and additionality during
in developing in certain low-income targets of the Fund. implementation will provide better
countries. and/or high-risk chances for success and

15
 countries sustainability.

Commercial failure of Likely Unless investments are Major
individual carefully appraised they
investments. can easily lead to
commercial failure.
Shortage of bankable Possible It is broadly recognized Major
investment projects by international
development finance
institutions, that there
is a serious shortage of
bankable investment
projects in developing
countries.
Commercial failure of investments
will mean that the concerned
partner enterprise, investors and
IFU will have high probability for
losses.
A shortage of bankable projects
could make it difficult for IFU to
maintain an adequate project
pipeline which could reduce the
quality of the portfolio of
investment projects and/or delay
the Fund’s investment activities.
IFU has established risk Minor
management procedures,
comprehensive appraisal procedures
and experience for mitigating the
risks detected prior to investments.
IFU is aware of the importance of Minor
maintaining a solid pipeline of
investment projects, and efforts are
made to develop a solid project
pipeline. IFU is further developing a
network of project developers in
relation to climate investment and
other thematic areas. Danida funds
have also been allocated to IFU to
promote project development on a
commercial basis.

Institutional Risks

Risk Factor Likelihood Background to Impact Background to assessment to Risk response Combined
assessment of potential impact residual risk
likelihood

Violation of human Likely Various studies Major Any possible violation of such IFU has signed up to the UN Global
rights, OSH and indicate that standards in a specific investment Compact principles and IFU has
environmental international and not project can have serious global comprehensive policies in place
standards least local enterprises consequences for the Fund and its which commits the investments to
often violate human investors in the form of responsible conduct in relation to
rights, OSH and reputational damage that may be labour rights, environment and anti-
environmental requiring to solve. corruption in accordance with
standards. Global Compact principles and UN’s
Guiding Principles on Business and
Human Rights.
Misuse, corruption Likely According to Major Implementation of investment Ref. above. Minor
and fraud by International projects could be seriously

16
participating Danish
and/or local partners
It may be difficult to Possible
attract investments
from institutional
investors
Transparency Index,
corruption is
widespread in most
developing countries
Investors may be Major
reluctant to invest in
developing countries
damaged if funds are mismanaged,
and it will undermine efforts by
local authorities and donors to
combat corruption
Private investors may find that the
design and performance of this
type of PPP-based funds are
inadequately tested.
Experience from KIF and DAF Minor
shows investors are willing to invest
in developing countries. Feedback
from the investors indicates that they
seek larger funds and larger
investment projects.

17
Annex 4: SDG Investment Fund - Environmental and climate screening note
Basic Information
Programme title: SDG Investment Fund (Fund)
Country/region: Global (all DAC countries)
Estimated allocation: DKK 100 million as an earmarked capital
contribution to the SDG fund, and DKK 200
million as a general equity contribution to IFU. In
addition to these contributions debt financing
supported by state guarantees will be provided.
Brief description of the Programme Contribute to the achievements of the SDGs and
support: the Paris Climate Agreement in development
countries through sustainable investments in clean
energy, food production, industry and
infrastructure, water and sanitation etc.
Dates (expected): Starting date January 2018. Investment period 3 years and exit of 8-10
years.

Climate change screening

Assess the status of policies and strategies to respond to climate change in the country and
sector. If the issue is inadequately dealt with (indicated by a tick in the “no” box), please add
comments and assess the potential impact on the program (see also “next steps” section,
below).
Issue: Yes No Comments and further
work to be done:
1. Are the processes and impacts of climate change x Not applicable given
documented (e.g. in national communications to the the global nature of
UNFCCC)? the Fund. These
issues will be assessed
at project level.

2. Is there a national climate change policy or strategy, x Not applicable given

including estimates of the economic costs of adaptation? the global nature of
the Fund. IFU has a
sustainability policy
which includes a
preventive and
precautionary
approach to
environmental
challenges including
climate change.

3. Have nationally appropriate mitigation actions x Not applicable (ref.

(NAMAs) and or Low Carbon Development Plans

18
 been identified (e.g. targets for renewable energy above)
production)?
4. Has a national adaptation programme of action x Not applicable (ref.
(NAPA) been approved identifying key sectors where above)
adaptation is required?
5. Are there effective and operational meteorological and x Not applicable (ref.
disaster preparedness organizations? above)

Summarize the overall assessment of climate change impacts and responses:

The Fund will significantly contribute to the reduction of greenhouse gas emission (CO2
equivalent). It is envisaged, that 30-40% of the Fund’s capital will be invested in climate projects
(renewable energy and energy efficiency). The remaining part of the capital, which is expected
be invested in other sectors, is also envisaged to have a positive impact on the reduction of
greenhouse gas emission.

IFU will access whether each investment project has a positive climate change impact, and
estimate net greenhouse savings in term of tons CO2 equivalent for climete projects (in cases
where the estimated investment project emissions are less than the baseline emissions) or
whether the project has a negative impact on greenhouse gas emission. If an investment project
is likely to be a significant net emitter of greenhouse gas (>25,000 tons CO2 equivalent per year)
there will be a requirement for action to reduce emission.

Screening of Country Green Growth Framework

Assess the status of policies and strategies for green growth and the procedures for
environmental impact assessment in the country and sector. If an issue is inadequately dealt with
(indicated by a tick in the “no” box), please add comments and indicate further work to be
undertaken (see also “next steps” section, below).
Issue: Yes No Comments and further
work to be done:
1. Do national procedures and legislation for Strategic Not applicable at
Environmental Assessment (SEA) and Fund level given the
Environmental Impact Assessment (EIA) exist? global nature of the
Fund. All investments
will as a minimum
follow national
regulations.

2. Are there operational Green Growth Strategies/actions Not applicable (ref.

plans and/or National Environmental Action plans? above)

3. Are there regularly updated state of the environment Not applicable (ref.
reports and green growth monitoring systems with above)
indicators?
4. Is there sufficient institutional and human capacity for Not applicable (ref.

19
 green growth and environmental management in the above)
sector concerned?
Summarize the overall impression of the Country Green Growth Framework:

Not applicable given the regional nature of the Fund.

Climate change and Green Growth opportunities and risks of programme

Assess how climate change and environmental opportunities and risks will arise through the
programme:
Will the programme ... Oppor- Risk: None:
tunity,

:
1. ... support green growth initiatives including livelihood x
improvements and resource efficiency
2. ... support the creation of decent and green job? x
3. ... contribute to effective management and efficient use of x
natural resources
4. ... have direct or indirect impact on climate change (e.g. through x
increasing or reducing emissions of greenhouse gases)?
5. ... have direct or indirect impact on occupational health and x
safety?
6. ... lead to changes in land and resource tenure and access rights, x x
including the rights of indigenous peoples?
7. ... include activities within or adjacent to protected or x x
environmentally sensitive areas?
8. ... have direct or indirect impact on the resilience of communities x
in the face of natural disasters?
Summarize and explain climate change and green growth opportunities:
The Fund provides very good opportunities to apply best available know-how and technologies
to reduce greenhouse gas emission, improve resource efficiency, improve livelihood, strengthen
focus on Global Compact and CSR principles in local enterprises/investment projects etc. IFU
financed projects shall comply with IFU’s sustainability policy requirements. IFU has signed up
to the UN Global Compact principles addressing all basic human rights, positive development
effects, good corporate governance and business ethics including anti-corruption, environmental
performance including climate change, etc.

Summarize and explain climate change and green growth risks:

Some development relevant investment projects could in principle include certain sustainability
challenges. Such issues will be assessed in accordance with international guidelines prepared by

20
the World Bank and IFC.
Identify requirements for undertaking an Environmental Impact Assessment (EIA).
Categories are: [ A ] Full EIA required; [ B ] Partial EIA required; [ C ] No EIA required11.

Intervention Name Category A, B or C:

1: Select category:
2: Select category:
3: Select category:

Will national regulations and procedures for EIA be applicable to activities of the programme
that have potential environmental impacts? – Yes - No

When will the EIA be undertaken?:

If required EIAs will be conducted in relation to the individual investment projects and in
according to IFU’s policies and procedures.

Next Steps – process action plan

Need for further work during the preparation, appraisal and implementation of the programme
arising from the climate change and green growth screening:

Suggested activity: Action needed Comments and elaboration:

1. Assessment of green growth and climate change Not applicable due to the
opportunities in sector development plan. global nature of the Fund
(ref. above)
2. Assessment of capacity for green growth and Ref. above
climate change management in the sector/country.
3. Prepare ToR for and conduct Country Analytical Ref. above
Work.
4. Prepare ToR for and conduct SEA(s) of sector Ref. above
policies or plans.
5. Prepare ToR for and conduct EIA(s) for Ref. above
programme interventions.
6. Initiate donor harmonisation in the sector on Ref. above
green growth and climate change.
7. Other...?

Signature of Screening Note

Place and date

Copenhagen, November 2016

VBE

11 Category A = Intervention is likely to have adverse environmental impacts that may be sensitive, irreversible, and
significant in scale/scope; B = Intervention is likely to have negative impacts, but which are less significant, not as sensitive,
numerous, major or diverse; C = The environmental risk of the intervention are of little or no concern.

21
Annex 5: SDG Investment Fund - HRBA/Gender screening note

Tool for Human Rights Based Approach (HRBA) and Gender Equality Screening

Purpose: The HRBA and Gender Screening Note complement the HRBA Guidance Note and the up-
coming Gender Equality Strategy and the Gender Equality Toolbox. The purpose of the note is to
facilitate and strengthen the application of the Human Rights Based Approach and mainstreaming of
gender equality programming related to Danish development cooperation. It can be used as an
inspirational checklist by all staff.

The information in the note should be based on the analysis undertaken as part of the preparation of
the Country policy paper and should draw on major Human Rights and gender equality analysis
relevant for the country such as UPR-processes, reports and documents from OHCHR, EU HR
Strategy, CEDAW-reporting as well as relevant analysis prepared by other major donors. The Screening
Note should be attached to the (country) programme concept note, and the questions raised below
should be reflected in the (country) programme document. Appraisal of country programmes will
include a specific focus on HRBA and Gender Equality.

Basic info
Title SDG Investment Fund

Country/ region Global (All DAC countries)

Estimated DKK 100 million as an earmarked capital contribution to the SDG fund, and DKK 200 million as a
allocation general equity contribution to IFU. In addition to these contributions debt financing supported by
state guarantees will be provided.

Brief description of Contribute to the achievements of the SDGs and the Paris Climate Agreement in developing
the Programme countries through sustainable investments in clean energy, food production, industry and
support infrastructure, water and sanitation etc.

Starting date and January 2018; Investment period 4 years and exit of 8-10 years
duration

Human Rights Based Approach

Assess whether a Human Rights (HR) Based Approach has been applied in the programme:
Human Rights Assessment and Standards
Issues:
Have major HR analysis relevant for the country
been consulted (UPR, OHCHR, EU HR Strategy,
other relevant donor documents)
Have key international HR standards and/or
mechanisms influenced choice and formulation of
outcome areas?
yes no Explain:
x Not applicable given the global nature of the Fund
x IFU has signed up to the UN Global Compact
principles, and is committed to implementing and
advancing these together with investment partners.
IFU’s policy is based on international UN, ILO and
OECD conventions, declarations and agreements,
including the UN Guiding Principles on Business
and Human Rights. IFU is also committed to
support the SDGs.

22
Where relevant, is application at national level,
including major gaps between human rights in
principle vs. human rights in practice, evaluated and
identified?
Are key recommendations from UPR for the
thematic programmes and from any treaty bodies,
special procedures, INGOs, HNRIs etc. that
require follow up at national level considered?
Are rights-holders identified?
Are duty-bearers identified?
Assess whether Human Rights Principles have been applied in the preparation and in the design of the programme?
Non-discrimination: Are any groups among rights-
holders excluded from access and influence in the
thematic programme areas identified?
Are disaggregated data available on most vulnerable
groups?
List any key support elements included to promote
non-discrimination
Participation and inclusion: Are barriers for
participation, inclusion and empowerment of rights
holders identified?
List any key support elements included to promote
participation and inclusion
Transparency: Is the extent to which information is
accessible to rights holders including marginalised
groups assessed?
Where relevant, whether information is available in
other than official languages of the country in
question should be indicated.
List any key support elements included to promote
transparency
Are key accountability mechanisms in the relevant
area – both horizontal and vertical listed?
Are obstacles, e.g. capacity and political-economy
x Not applicable given the global nature of the Fund.
These issues will be assessed in relation to the
individual investment projects.
x Not applicable given the global nature of the Fund.
x Not yet due to the global nature of the Fund.
However, the right-holders will be people
employed in the investment projects and
communities affected by the investments.
Not yet due to the global nature of the Fund.
However, the duty bearers may include public
authorities and private sector stakeholders
responsible for private sector regulations and
framework.
x The participating private investors must ensure that
their policies and practices promote equal
opportunities and prevent discrimination. IFU
encourages the participating investors to promote
gender equality.
x Not applicable given the global nature of the Fund.
IFU will prepare gender segregated employment
data.
x IFU uses the UN Global Compact self-assessment
tool which includes an assessment of all human
rights including discrimination.
x Not applicable due to the global nature of the
Fund. Such issues will be assessed in relation to the
individual investment projects.
x IFU uses the UN Global Compact self-assessment
tool which includes an assessment of human rights
including participation/inclusion.
x Not applicable at programme level given the global
nature of the Fund. Such issues will be assessed in
relation to the individual investment projects.
x IFU uses the UN Global Compact self-assessment
tool which includes an assessment of human rights
including
communication/participation/transparency.
x Not applicable given the global nature of the Fund.
x Not applicable given the global nature of the Fund.
23
incentives that duty-bearers and rights holders face
to exercise their obligations and rights listed?
List any key support elements included to promote
accountability
Results/Indicators
List any indicators designed to monitor the
realisation of specific human rights
List any indicators designed to monitor the
integration of the four principles
List any key indicators chosen to track capacity of
key partners (both rights holders and duty bearers)
Dialogue Partners
Define key dialogue partners (duty bearers) to be
addressed by the country programme
Define key alliance partners, including other
likeminded donors, multilateral partners and CSO’s
State major dilemmas/risks associated with the
policy dialogue and proposed mitigation measures
(incl. reference to Framework for Risk Assessment)
Gender Screening Tool
Are key challenges and opportunities for gender
equality identified?
Are reference made to CEDAW-reporting, UPR,
and other relevant gender assessments?
Identify opportunities/constraints for addressing
gender equality issues
Describe key strategic interventions to promote
gender equality within each thematic programme?
Explain how gender specific purposes with be
reached, which strategic approach, what activities
are planned
Define expected outputs.
Such issues will be addressed at the investment
project level.
x IFU uses the UN Global Compact self-assessment
tool which includes an assessment of human rights
including communication and reporting towards
stakeholders and vulnerable groups – e.g. free prior
and informed consent (FPIC)
x IFU uses the UN Global Compact self-assessment
tool which includes an assessment of all human
rights issues, core labour standards, environmental
issues and anti-corruption.
x Ref. above.
x Ref. above.
Not applicable given the global nature of the Fund.
Such issues will be assessed in relation to the
individual investment projects.
Ref. above
Not applicable given the global nature of the Fund.
Not applicable given the global nature of the Fund.
Such issues will be assessed in relation to the
individual investment projects.
Ref. above.
Not applicable given the global nature of the Fund.
Such opportunities and constraints will be assessed
in relation to the individual investments projects.
The Fund will pursue gender equality at all levels
where applicable.
The policies and activities of the investment
projects and the participating stakeholders must
respect women’s’ rights and promote political,
social and financial equality between men and
women.
Ref. above
Not applicable given the global nature of the Fund.
Such issues will be assessed at the level of the
individual investment projects.
24
Identify gender equality indicators aligned with Ref. above.
national targets on gender if possible.

25