Climate Finance


Limiting global temperature rise to below 1.5°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 GNI+, 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


From Banks to Capital Markets: Alternative Investment Funds as a Potential Pathway for Refinancing Clean Energy Debt in India

July 10, 2019

This design case study looks at various avenues for renewable energy to access capital markets in India. It shows that Alternative Investment Funds (AIFs) offer the best near and medium-term path to expanding renewable energy access to capital markets while more structural issues are addressed, and outlines how to design and take forward this instrument.

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CPI at London Climate Action Week

London, UK, July 1, 2019

Climate Policy Initiative is participating in several events for London Climate Action Week, July 1-8.

Driving private finance to achieve ...

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CPI Launches Climate-aligned Finance Tracking Group

June 25, 2019

London – Climate Policy Initiative (CPI), with the support of the German Federal Environment Ministry’s (BMU) International Climate Initiative (IKI), ...

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CPI at Innovate4Climate 2019

Marina Bay Sands Expo and Convention Center, Singapore, June 4, 2019

Climate Policy Initiative will be hosting or speaking at several sessions during the World Bank Group's Innovate4Climate at the Marina ...

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Developing a Guarantee Instrument to Catalyze Renewable Energy Investments in Indonesia

June 3, 2019

This CPI study, produced in collaboration with PT Sarana Multi Infrastruktur (Persero) is part of a research program which explores the potential of developing a green investment bank model in Indonesia. The overall objective of the program is to help development financial institutions, policymakers, and donors to understand the opportunities and challenges of applying the green investment bank model in the country. In this analysis, we specifically focus on the potential of developing a guarantee instrument to help catalyze renewable energy investments in Indonesia.

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