INSTRUMENT ANALYSIS

The Sustana Cooling India Fund is a USD 100 million blended capital equity fund designed to support early-growth companies in India's cooling sector. By utilizing a first-loss cushion and combining senior and subordinated equity, the fund aims to de-risk investments in energy-efficient space cooling and cold supply chains. The instrument targets the 'missing middle' of funding (pre-Series A/B stages) to drive both climate mitigation and adaptation, with a projected return of 18.04% in USD terms for limited partners.

• The Sustana Cooling India Fund is a USD 100 million blended capital equity fund targeting early-growth stage companies in India, with a first close target of USD 50 million.
• The fund employs a blended finance structure featuring senior equity for private investors, subordinated equity for development finance institutions (DFIs) and climate funds, and a first-loss cushion funded by philanthropies and impact investors to attract risk-averse private capital.
• The instrument specifically targets the 'missing middle' of funding, focusing on startups in the initial traction to early growth phase between pre-Series A and Series B stages, aiming to support 15-30 companies.
• The fund's financial model indicates that the inclusion of concessional equity as a partial lever can generate a return of 18.04% in USD terms for Limited Partners (LPs).
• The fund addresses critical gaps in India's cooling sector, where demand is projected to increase eight-fold by 2038, and where inefficient solutions could increase total emissions by 10%.
• Beyond equity, the fund includes a technical advisory (TA) facility funded by donor grants to assist portfolio companies with market assessments, business process improvement, and staff training.
• The fund's dual focus on adaptation and mitigation targets outcomes such as reducing food wastage by 0.1 million tonnes and providing incremental cooling access to 1 million people, including 400,000 women.

APA

Climate Policy Initiative (2024). INSTRUMENT ANALYSIS. https://www.climatepolicyinitiative.org/wp-content/uploads/2024/09/Sustana-Cooling-India-Fund.pdf

Chicago

Climate Policy Initiative. INSTRUMENT ANALYSIS. 2024. https://www.climatepolicyinitiative.org/wp-content/uploads/2024/09/Sustana-Cooling-India-Fund.pdf.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=INSTRUMENT ANALYSIS |date=September 2024 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2024/09/Sustana-Cooling-India-Fund.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2024instrument, author = {{Climate Policy Initiative}}, title = {{INSTRUMENT ANALYSIS}}, institution = {Climate Policy Initiative}, year = {2024}, month = sep, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2024/09/Sustana-Cooling-India-Fund.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }