Matching climate finance with investment opportunities is a global challenge of unprecedented scale, which could make or break the world’s transition towards sustainable energy and transportation.
There is a pressing need to deploy more climate finance from global and regional financiers to fund climate-positive projects. Likewise, there is no scarcity in pledges or commitments to deliver climate finance.
The key to unlocking these resources is two-fold: First, to identify a robust pipeline of bankable and credible climate projects; Second, to design optimal financing structures that strategically combine public and private capital.
The opportunity for success lies in understanding the distinctive mandates and risk appetite of various climate finance providers — be it multilateral development banks, bilateral climate funds or private fund managers – which all want their finance to deliver a return, financially and for the climate, albeit to a varying extent.
In turn, governments, infrastructure project developers, and stakeholders need support to navigate the vast climate finance architecture at the national, regional, and international levels, which often come with rigorous and different gatekeeping processes.
Climate finance needs are in the trillions of dollars to:
- Reduce dependence on fossil fuels which requires significant investments in alternative technologies and approaches
- Build more public transit and invest in electric vehicle charging infrastructure
- Produce more renewable energy and distribute it at a low cost for households and businesses
- Adapt existing infrastructure and build new infrastructure to cope with more variable and extreme climate hazards
- Support emerging economies in crowding-in investment for climate-smart projects
CPCS helps clients with questions such as:
- How can emerging economies unlock climate finance for infrastructure that meets both their adaptation and mitigation needs?
- What financial instruments or mechanisms are suitable for a given climate technology or market?
- What projects are best suited for climate finance as opposed to traditional finance?
- How can project bankability for climate-smart projects be improved?