Climate Finance

CLIMATE FINANCE

Limiting global temperature rise to below 2°Celsius while achieving sustainable development will require trillions in new investments, and a deliberate shift toward low-carbon, climate-resilient economic models.

 

Our Focus

With international expertise in finance and policy, Climate Policy Initiative’s climate finance division helps governments, businesses, and financial institutions drive economic growth while addressing climate change. The program, which is led by Dr. Barbara Buchner, works to drive low carbon, resilient investment at scale.

Our program areas form a stepping stone approach to reaching this goal:

  1. The State of Climate Finance – CPI is the leading authority on tracking and analyzing climate finance flows. The Global Landscape of Climate Finance is the most comprehensive inventory of climate change investment available. It is a key tool for policy makers to assess the scale of finance, identify the main actors in the market, reveal investment gaps, and highlight opportunities to mobilize finance to fulfill investment potential. Our work influenced the Paris Agreement, and continues to be used by the UNFCCC. CPI’s robust methodology has also been applied at a national and sectoral level to support the governments of India, Indonesia, and Cote d’Ivoire, as well as by SEforAll to assess progress towards the UN Sustainable Development Goal to improve access to energy, and by IRENA to track renewable energy investment globally.
  2. Effective Finance – CPI advises governments and development finance institutions on the effectiveness of their portfolios, including the UK government’s Department for International Development, the Climate Investment Funds, and the Ministry of Finance in Indonesia. CPI also works to improve public finance interventions in key regions, such as India and Indonesia. For example, in India, we have worked with the Ministry of New and Renewable Energy and Ministry of Finance to illuminate issues around the cost of capital and revise low-cost debt policies.
  3. Transformative Finance – CPI supports the implementation of new and transformative finance solutions that mobilize sustainable investment at scale. CPI manages the Lab: a high-level group of public and private investors that identifies, develops, and supports pilots of transformative climate finance instruments. Since its start in 2014, the 26 investment vehicles incubated and launched by the Lab have collectively mobilized over $1 billion in finance for renewable energy, energy efficiency, sustainable agriculture, water, and climate resilience projects around the world. The Lab has been endorsed by the governments of India, Brazil, and the G7. CPI’s work managing the Lab was also selected in the top 11 “Best Bets” out of nearly 2000 applicants to the MacArthur 100&Change award. In addition to the Lab, CPI manages USICEF, India’s first project preparation facility for distributed renewable energy, and leads GNIplus, a partnership between CPI, Baker & McKenzie, and AECOM to provide governments with the best available policy, technical, financial, governance, and legal expertise to support their climate goals.

 

Climate Finance News

PUBLICATION

Transitional Foreign Exchange Debt Platform: Paths to Enable Foreign Currency Debt to the Rooftop Solar Sector in India

June 18, 2018

Low access to debt capital remains one of the key barriers to achieving the Indian government’s target of 40GW of rooftop solar installations by 2022. Foreign capital can help bridge the gap in debt availability for rooftop solar, however, foreign currency debt exposes rooftop solar project sponsors to the risk of foreign exchange rate fluctuation...

Read More

BLOG

Mobilizing Institutional Investment in Indian Renewables

June 12, 2018

India has been a sweet spot for renewable energy investment exhibiting an 11% compound annual growth rate (CAGR) between 2004 ...

Read More

BLOG

Solar Municipal Bonds: Unlocking India’s Energy Potential

June 7, 2018

India has topped the charts across the world in bad air quality. A recent study by the World Health Organisation (...

Read More

EVENT

Sustainable Finance Forum Luxembourg

Cercle Cité, Luxembourg, May 30, 2018

CPI Associate Director, Dr. Angela Falconer will attend the Sustainable Finance Forum Luxembourg on May 30, 2018. Angela will participate ...

Read More

EVENT

Innovate4Climate

Frankfurt, Germany, May 22, 2018

The Lab will be hosting a workshop at the World Bank Group’s Innovate4Climate in Frankfurt, on May 24th at ...

Read More