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The funding mechanism Print E-mail

ImageFor the realisation of sustainability projects, financial support is needed. The Sustainability of the Planet Program works as an identifier, shaper, coach and assessor of the proposed projects, and ultimately as a broker between projects managers and financiers. Candidate projects often need a combination of different funding.

Projects in early stages of development and projects with little or no expectations of returns often need 'soft money', e.g. from foundations and seed funds. For projects with sound economic feasibility, normal credits can be arranged in a risk reduced Public Private Partnership (PPP). Other projects may have the potential to attract investors with expectations of expansion, strong growth and high yields. A project may need financial support by several types of funders, e.g. both donors and investors. As a consequence, several types of financial stakeholders are needed:

A first group, consisting of private and public donors and funders, may consist of governments, organisations and foundations committed to support objectives of sustainability. 
A second group, financiers and investors representing the debt and equity financing side; credits and loans. These usually have their own conditions, rates and terms, but always a clear focus on economic results. Multilateral financing institutions also belongs to this category, as well as equity finance with venture capital and private equity. 
A third group of investors consists of micro-financing organisations, offering very small credits mainly to individuals. 

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Last Updated ( Monday, 12 November 2007 )