D-TAFS fund targets $250m to help fashion suppliers cut carbon, energy, and chemical waste

The D-TAFS fund, managed by SIMA Funds with the International Finance Corporation, is a structured debt facility targeting $250 million and scalable to $400 million. It provides long-term loans to textile, apparel, and footwear suppliers for energy efficiency, renewable energy installations, water improvements, and chemical reduction. Anchor funding includes $50 million from Inditex, $60 million from IFC, and $13.8 million in concessional financing from the GEF to absorb first losses, which lowers risk for private investors. The fund aims to support at least 60 borrowers over 10 years, cut 3 million tonnes of CO2 equivalent emissions, and benefit 150,000 workers, most of them women. Because suppliers account for most fashion brands' Scope 3 emissions, the fund targets them directly. A separate $917,000 GEF technical assistance grant will cover chemical assessments, staff training, safer alternatives, and progress toward a Preferred Chemicals List covering about 1,300 high-use chemicals. The blended finance model could later be applied to other supply chains like electronics and food.