Climate Resilience and Adaptation Finance Technology Transfer Facility (CRAFT)

CRAFT, managed by the Lightsmith Group, is a commercial growth equity fund targeting SMEs with proven climate adaptation and resilience technologies in developed and developing countries, including Africa. Having reached its first close in 2019 with backers like the Rockefeller Foundation, KfW, and EIB, the fund targets high-vulnerability, low-risk countries and seeks capital from institutional investors and development finance institutions.

• CRAFT is a growth equity fund and the first commercial investment vehicle dedicated to increasing the availability of climate adaptation and resilience solutions. It targets small and medium-sized enterprises (SMEs) in developed and developing countries, including Africa, that possess proven technologies, demonstrated revenue, and market demand. While not exclusively focused on energy, the fund targets SMEs that improve energy reliability and availability or develop risk forecasting to mitigate climate risks in the energy sector.
• The fund reached its first close in 2019 with investments from the EIB, KfW, and the Rockefeller Foundation, alongside other private and public investors. CRAFT has mapped over 700 companies across 20 climate resilience market segments, which represent more than USD 130 billion in current spending.
• CRAFT utilizes a structure with separate sleeves for developed and developing countries. The developing country sleeve seeks non-concessional equity, concessional equity, and grants from government ODA agencies and multilateral and bilateral development banks. The fund also targets institutional investors, including family offices, foundations, endowments, insurance companies, and pension funds. Investment targets are countries characterized by high climate vulnerability and low investment risk, with risk assessed via criteria such as currency volatility, lending interest rates, net DFI as a percentage of GDP, and average domestic credit to the private sector.

APA

Climate Policy Initiative (2021). Climate Resilience and Adaptation Finance Technology Transfer Facility (CRAFT). https://www.climatepolicyinitiative.org/gca-africa-adaptation-finance/case_studies/climate-resilience-and-adaptation-finance-technology-transfer-facility-craft-2/

Chicago

Climate Policy Initiative. Climate Resilience and Adaptation Finance Technology Transfer Facility (CRAFT). 2021. https://www.climatepolicyinitiative.org/gca-africa-adaptation-finance/case_studies/climate-resilience-and-adaptation-finance-technology-transfer-facility-craft-2/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Climate Resilience and Adaptation Finance Technology Transfer Facility (CRAFT) |date=16 September 2021 |url=https://www.climatepolicyinitiative.org/gca-africa-adaptation-finance/case_studies/climate-resilience-and-adaptation-finance-technology-transfer-facility-craft-2/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2021climate, author = {{Climate Policy Initiative}}, title = {{Climate Resilience and Adaptation Finance Technology Transfer Facility (CRAFT)}}, institution = {Climate Policy Initiative}, year = {2021}, month = sep, url = {https://www.climatepolicyinitiative.org/gca-africa-adaptation-finance/case_studies/climate-resilience-and-adaptation-finance-technology-transfer-facility-craft-2/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }