impact inves,ng opportuni,es in the philippines: renewable ...€¦ · impact inves,ng opportuni,es...

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Impact Inves,ng Opportuni,es in the Philippines: Renewable Energy, Cooling, and Fishery Management Rare & The Meloy Fund: Rare is an interna*onal conserva*on NGO working to promote sustainable behaviors in rural communi*es with a par*cular focus on fisheries, freshwater, and agriculture. Established in 2016, The Meloy Fund is the impact inves,ng ini,a,ve of Rare, targe*ng interven*ons in small-scale fisheries in the Philippines and Indonesia. The Meloy Fund pursues a triple boCom line : social, environmental, and financial. Project Background: Rare approached MIT Sloan with the goal of exploring investments in business solu*ons and technologies that would reduce waste in the Filipino fisheries, with a par*cular focus on using clean energy such as PV solar. Rare was also interested in the standalone economics of clean energy projects. Methodology: Through primary interviews and academic, professional, and governmental research sources, we explored the Business Environment , Energy Environment and Regula,ons, and Fishery Value Chain to iden*fy poten*al leverage points and investment opportuni*es in Distributed Solar Businesses, Fishery-Level Cooling Interven,ons, and Grid Scale Solar Developments. Key Findings & Outputs: In addi*on to a broad landscape analysis, we developed an investment framework with criteria spanning financial return, impact, and risk with the flexibility to change weigh*ngs according to investor preference. We expect Rare to use this to compare and priori,ze among various investments. We also modeled the financial return of a one megawaR solar project (>26% IRR) and inves*gated key leverage points related to environmental impact: we found the energy required to produce ice was small compared to the energy used in other parts of the value chain. ScoR Keto, Lisa Khanna, Dora Aldama, Catherine Wright

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Page 1: Impact Inves,ng Opportuni,es in the Philippines: Renewable ...€¦ · Impact Inves,ng Opportuni,es in the Philippines: Renewable Energy, Cooling, and Fishery Management Rare & The

ImpactInves,ngOpportuni,esinthePhilippines:RenewableEnergy,Cooling,andFisheryManagement

Rare&TheMeloyFund:Rareisaninterna*onalconserva*onNGO

workingtopromotesustainablebehaviors

inruralcommuni*eswithapar*cularfocus

onfisheries,freshwater,andagriculture.

Establishedin2016,TheMeloyFundisthe

impactinves,ngini,a,veofRare,targe*nginterven*onsinsmall-scale

fisheriesinthePhilippinesandIndonesia.

TheMeloyFundpursuesatripleboComline:social,environmental,andfinancial.

ProjectBackground:RareapproachedMITSloanwiththegoalof

exploringinvestmentsinbusinesssolu*ons

andtechnologiesthatwouldreducewasteintheFilipinofisheries,withapar*cularfocus

onusingcleanenergysuchasPVsolar.Rare

wasalsointerestedinthestandalone

economicsofcleanenergyprojects.

Methodology:Throughprimaryinterviewsandacademic,

professional,andgovernmentalresearch

sources,weexploredtheBusinessEnvironment,EnergyEnvironmentandRegula,ons,andFisheryValueChaintoiden*fypoten*alleveragepointsand

investmentopportuni*esinDistributedSolarBusinesses,Fishery-LevelCoolingInterven,ons,andGridScaleSolarDevelopments.

KeyFindings&Outputs:Inaddi*ontoabroadlandscapeanalysis,wedevelopedaninvestmentframeworkwithcriteriaspanningfinancialreturn,impact,andriskwiththeflexibilitytochangeweigh*ngs

accordingtoinvestorpreference.WeexpectRaretousethistocompareandpriori,zeamongvariousinvestments.WealsomodeledthefinancialreturnofaonemegawaRsolar

project(>26%IRR)andinves*gatedkeyleveragepointsrelatedtoenvironmentalimpact:we

foundtheenergyrequiredtoproduceicewassmallcomparedtotheenergyusedinother

partsofthevaluechain.

ScoRKeto,LisaKhanna,DoraAldama,CatherineWright