Deutsche Bank is helping launch a Green Climate Fund ( GCF )-backed private equity climate fund - the Mekong Earth Regeneration Fund ( Merf ) – that aims to reduce approximately 8 million tonnes of emissions, support more than 300,000 people and advance the transition to sustainable and resilient agriculture and food systems across Southeast Asia’s Lower Mekong region.

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The GCF is the world’s climate fund for developing countries, mobilizing capital at scale, strengthening institutions and driving transformative change through its global partnerships.

Deutsche Bank, as an accredited entity of GCF, has facilitated a US$50 million investment by the GCF in the new climate fund, which is expected to attract capital at a 3:1 ratio, underscoring how blended finance can accelerate climate investment in emerging markets.

The investment plays a catalytic role in enabling the fund to mobilize additional co-financing from public and private investors by using a blended finance structure to reduce risk and attract institutional capital into the regenerative agriculture and sustainable land-use sectors.

The Merf will invest in agribusinesses and value-chain companies that work directly with smallholder farmers, supporting the transition to lower-emission and climate-resilient practices. These include regenerative farming, agroforestry and sustainable aquaculture, with a focus on improving soil health, reducing chemical inputs and strengthening ecosystem resilience.

The bank provides oversight for the programme, ensuring capital is deployed in line with GCF policies, including international environmental and social standards. The bank oversees fund implementation while Mekong Capital will provide fund manager services by investing capital.

The model is designed to address a critical gap in climate finance in emerging markets, such as Vietnam and Laos, where there is a lack of private equity resources available for investments in regenerative agriculture and other priority sectors. By providing equity capital, Merf provides long-term funding for investee companies to invest in regenerative agriculture and sustainable land use without immediate repayment pressure.

The Merf is the dedicated impact initiative of Mekong Capital, a Vietnam-focused private equity firm specializing in growth capital investments. The programme highlights the increasing role of public-private partnerships in climate finance, particularly in regions where upfront risks and long payback periods have historically limited private investment.

Mekong Capital, as a private equity investor in multiple market-leading companies in Vietnam is known for its Vision Driven Investing approach, through which it partners with management teams to achieve breakthrough business performance.

“Blended finance structures like Merf are critical to unlocking private capital at scale,” Kamran Khan, Deutsche Bank’s head of sustainable finance for Asia-Pacific and Middle East and Africa. “By combining concessional funding with institutional investment, we can accelerate innovative climate solutions to reduce emissions in markets that can be perceived as higher risk.”