Mekong Capital Receives Convergence Grant for its Regenerative Agriculture and Sustainable Land Use Initiative in the Lower Mekong Region

Ho Chi Minh City, 12 September 2024 — Mekong Capital is pleased to announce that it has been awarded a proof-of-concept grant from Convergence for its impact initiative, a multimillion-dollar blended finance project that aims to provide private growth stage funding and technical assistance for regenerative agriculture and sustainable land use businesses in the Lower Mekong region.

This grant, awarded through Convergence’s Asia Climate Solutions (ACS) Design Grant, serves as a significant endorsement of the impact initiative. It will enable Mekong Capital to finalize the design of the project and its complementary technical assistance facility.

In recent decades, the Lower Mekong region has experienced significant shifts in agricultural practices. These changes have resulted in greater vulnerability to climate-related risks and an increase in greenhouse gas (GHG) emissions from agriculture, forestry, and land use. The majority of the region’s population continues to rely heavily on farming and rural agricultural activities for their livelihood. The project aims to foster a thriving, biodiverse ecosystem in Cambodia, Laos, and Vietnam through sustainable land use, nature-based solutions, and regenerative farming practices. The project’s long-term objectives are improving the livelihoods of at least 1 million beneficiaries, regenerating over 200,000 hectares of land, including agricultural and coastal land, and contributing to over 10 million tons of CO2e emission reductions.

Ellen Van, Mekong Capital Principal, commented: “The partnership between Mekong Capital and Convergence is set to accelerate the mobilization of much-needed capital for climate adaptation and mitigation and uplifting farmers in the Lower Mekong Region. Through this initiative, Mekong Capital aims to lead the way in private sector’s engagement in regenerative agriculture.”

“Mekong Capital’s impact initiative was selected for its potential to generate development impact, its replicability in other sectors and geographies, and the team’s strong track record of engagement and regional presence,” said Leah Pedersen, Convergence Senior Director, Market Acceleration and Design Innovation. “We believe the project will play an important role in supporting local populations to protect, preserve, and sustainably manage lands in the Lower Mekong region.”

This grant builds upon the initial funding that Mekong Capital received from the Dutch Fund for Climate and Development (DFCD)’s Origination Facility, which supported the completion of the feasibility study and initial design of the project. The ACS Design Grant is funded by four anchor donors: The Department of Foreign Affairs and Trade Australia, the Monetary Authority of Singapore, The Olayan Group, and UBS Optimus Foundation.

As this initiative progresses, Mekong Capital remains committed to its mission of driving sustainable growth and creating lasting positive impact in the Lower Mekong region. Ongoing efforts will focus on refining the project design, engaging with local communities, and ensuring that all activities are grounded in robust data and evidence to support our sustainability goals.

MEDIA CONTACT

Mia Vo
Head of Communications
Mekong Capital
mia@mekongcapital.com