Clifford Chance advises ADB on financing to Greenway subsidiary for carbon offset project in India

Global law firm Clifford Chance has advised Asian Development Bank (ADB) on its US$6.5 million senior secured financing to SDG 13 Ventures Pte Ltd (SDG 13), a subsidiary of Greenway Grameen Infra Private Limited (Greenway), for the development of a carbon offset project in India. The project involves the production and distribution of 1 million improved cookstoves to rural households in Madhya Pradesh and Odisha states. The financing was further supported by a US$3.25 million first-loss liquidity reserve facility provided by the Climate Innovation and Development Fund administered by ADB.

The project will subsidise the cost of the new, more efficient cookstoves to rural households and result in a total reduction of 22.9 million tons of carbon dioxide. Greenway, through SDG 13, will sell the carbon credits generated from use of the improved cookstoves to international buyers.

A cross-border team from Singapore, London, Tokyo, Washington DC, and New York advised on the due diligence and financing of the project. Partner Nicholas Wong oversaw the execution of the transaction and counsel Mel Chan led on the financing, with support from senior associates William Holmden and Desmond Ng and associate Jasmine Wong. Partner Nigel Howorth and associate Alex Madafiglio led on due diligence and provided specialist advice on voluntary carbon market matters. Additional expertise was provided by partner Janice Goh (data privacy matters), partner Matthew Warner and counsel Catherine Ennis (Verra and VCU matters).

Nicholas Wong said, “We are delighted to have advised ADB on this important transaction, applying our cross-border and cross-practice expertise to help them mitigate the impacts of climate change through their support of this carbon reduction project, while promoting rural development and food security in these locations in India. We are hopeful that this will pave the way for similar sustainable carbon financings in the future and further collaboration between the private sector and multilateral institutions in this space.”

This transaction continues Clifford Chance’s long-standing partnership with ADB in the sustainability space, including its US$186 million financing on Vietnam’s first certified green loan for the country’s largest single operating solar power plant, and track record of advising on significant renewable transactions, most recently advising on 1,022MW Hai Long offshore wind farm project in Taiwan.