Cape Town, 26 February – The FiCS Financial Innovation Lab has selected three innovative proposals from Public Development Banks (PDBs) to receive financial and technical support as part of its inaugural incubator cycle. The announcement is taking place at the Finance in Common Summit in Cape Town, South Africa, running from 26-28 February 2025. 

Designed to tackle barriers in climate finance, the FiCS Lab Incubator supports PDBs in Emerging Markets and Developing Economies (EMDEs) to develop innovative solutions that help bridge the climate finance gap. 

Established at COP28 through a partnership between Climate Policy Initiative (CPI), FiCS, and the Inter-American Development Bank (IDB), the incubator supports PDB-led financial instruments aimed at overcoming challenges in climate finance. In this first cycle, three standout proposals have been selected to receive both financial backing and technical assistance to pilot their innovative solutions. 

• Uganda Development Bank is tackling currency risk challenges by developing a novel risk distribution instrument involving a development-oriented hedge provider and an innovative tail-end guarantee. 
• Development Bank of Southern Africa (DBSA) is conducting critical assessments to establish a voluntary carbon market platform, addressing existing barriers to effective market development. 
• Development Bank of Minas Gerais (BDMG), Brazil is creating a Credit and Production Guarantee Fund to assist local farmers in transitioning to regenerative agriculture practices. 

Barbara Buchner, Global Managing Director of CPI, stressed the importance of the Incubator in scaling climate finance: 

“The FiCS Lab Incubator is an exciting new platform for innovation. Each proposal is proof that international partnerships and local expertise can combine forces to create actionable solutions to finance barriers. These innovative financial instruments demonstrate that, with just a small amount of support, public development banks have the vision, expertise, and capacity to accelerate climate finance at scale.” 

Anderson Caputo, Chief of the Connectivity, Markets and Finance Division at the Inter-American Development Bank (IDB), said: 

 “The FiCS Lab Incubator is a critical platform for innovation. It gives public development banks a fantastic opportunity to work together to find pioneering and replicable climate finance solutions to achieve greater impact and scale. I am pleased that three groundbreaking proposals are underway now, with more to come later in the year.” 

Adama Mariko, Secretary General, Finance in Common, said:  

“The FiCS Lab is dedicated to empowering public development banks with more resources and expertise to create scalable, impactful solutions to climate finance challenges. We are thrilled to see these projects coming to life and inspire further innovation and ambition.” 

Ms Boitumelo Mosako, Chief Executive Officer at Development Bank of Southern Africa (DBSA), stated: 

“The FiCS Lab Incubator provides an essential platform for addressing barriers to carbon market development in South Africa. With this support, we are exploring impactful approaches to unlock the potential of voluntary carbon markets with our partners.” 

Gabriel Viegas Neto, President of Development Bank of Minas Gerais (BDMG), Brazil, said: 

“With the backing of the FiCS Lab, we are developing a Guarantee Fund that will empower farmers to adopt regenerative agricultural practices, promoting sustainable production and climate resilience in Brazil.” 

Looking Ahead: The FiCS Lab in 2025 

The second cycle of the FiCS Lab Incubator will build upon the lessons learned from the inaugural cycle. A competitive call for proposals will open in September 2025, with selected instruments receiving development support throughout 2026. 

For more information on the FiCS Financial Innovation Lab and its initiatives, visit www.financeincommon.org/fics-innovation-lab. 

About FiCS Financial Innovation Lab 

Launched in May 2024, the FiCS Financial Innovation Lab is a collaborative platform dedicated to advancing climate finance solutions through PDB-led initiatives. Through its Incubator and Working Groups, the FiCS Lab supports the development of innovative financial instruments to address pressing climate and economic challenges in EMDEs. 

Media contact 

Jana Stupperich 
Senior Communications Associate 
Climate Policy Initiative 
jana.stupperich@cpiglobal.org