Deploying the trillions needed to address global climate adaptation and mitigation requires more than just shifting investments. It requires novel ways to attract and deploy those investments.
CPI researches and develops innovative climate finance policies, financial instruments and business models that create measurable impact and can scale quickly. It has particular expertise in combining blended finance models with early-stage technical assistance to ensure bold ideas move from concept to implementation quickly and with as little risk as possible.
Existing decentralized renewable energy business models fail to address prevailing barriers in the sector, ranging from policy barriers, limited access to finance, and high investment risks, discouraging private investments.
This brief, which is part of CPI’s work on tracking global climate finance flows, proposes a preliminary methodological approach and analytical framework to measure the nature and speed of shifts in private capital in response to climate change.
Since 2014, the Global Innovation Lab for Climate Finance has launched 41 innovative climate finance instruments that have collectively mobilized $2 billion in investments from public and private investors. It is currently accepting ideas of innovative instruments for the 2020 cycle.
Debt-for-climate swaps have become a movement within development finance over the past few months. But: Are they really a good idea, and if so what hurdles must be overcome to get to the opportunities beyond?
While challenging, scaling up climate finance ideas is possible, and is greatly facilitated by four success factors that can be influenced by the entrepreneurs developing these initiatives and their stakeholders.
With the dawn of COVID-19, there is an immediate need for policymakers to create an investment environment that nudges capital flow towards decentralized renewable energy.
The Energizing Finance series, developed by SE4All in partnership with CPI, is the first and only in-depth attempt to capture multiple years of data on finance for the two key areas of energy access: electrification and clean cooking.