• The 55 Lab-developed ideas have mobilized USD 3 bn in climate investments
• High engagement from the Lab’s member network of 70+ public and private financial institutions mobilized 6x in additional investment
• Recent portfolio progress includes investments in water and sanitation, clean energy, and climate adaptation
• The Lab is looking for new innovative ideas to develop in 2022

London –The Global Innovation Lab of Climate Finance (the Lab) is proud to announce that the Lab’s 55 climate finance solutions developed since 2014 have now mobilized more than USD 3 billion in sustainable investments in emerging economies. The milestone comes just one month after COP26, where the need to rapidly scale climate finance had the spotlight.

“COP26 reinforced the urgent need for investors to scale their climate ambitions. The Lab offers a broad portfolio of innovative and impactful opportunities, addressing some of the most difficult market barriers that inhibit climate investment in emerging economies,” says Dr. Barbara Buchner, Global Managing Director at Climate Policy Initiative, who secretariats the Lab.

The USD 3 billion includes USD 416 million in investments from Lab members and USD 2.7 billion catalyzed from other investors. Private sources account for over USD 850 million, and more are expected as the instruments continue to scale.

“Many Lab solutions successfully employ blended finance mechanisms to leverage capital from public and philanthropic sources to increase private sector climate investments. Through our Design Funding program, Convergence is proud to have supported Lab instruments such as PAYS, RISCO, and Green FIDC in bringing their climate finance innovations to the market,” says Joan Larrea, CEO of Convergence.

Recent announcements of Lab instrument progress include:

• Climate Investor Two: Climate Fund Managers raised USD 675 million to provide expertise, technology, and financing to infrastructure projects in emerging markets by mobilizing private sector financing at scale. Building on Climate Investor One’s focus and expertise in renewable energy, this second facility will focus on water, sanitation, and ocean infrastructure.
• Green FIDC: the first FIDC [a fund to securitize receivables] issued as a climate bond in Brazil raised USD 35.8 million for clean energy and energy efficiency projects. Based on the Green FIDC model, the Green CRI, a mortgage-backed security for real estate investors, raised an additional USD 14.3 million, totaling USD 50 million.
• CRAFT: the Green Climate Fund approved USD 100 million for CRAFT to scale up adaptation finance and accelerate development, application, and transfer of private-sector technologies in climate adaptation and resilience.

The Lab helps climate finance entrepreneurs to develop and launch investment solutions that unlock investments for sustainable development goals in emerging markets. The Lab’s network includes over 70 public and private investors and institutions who actively select and guide the design of the ideas.

Through December 22, 2021, the Lab is accepting submissions for its eighth annual cycle. Ideas should address barriers to climate investment in emerging markets while supporting a net-zero economy transition.

Selected ideas will receive over seven months of intensive instrument design, market analysis, and funder, investor, and implementation partner networking support from high-level leaders from the public and private sectors and Climate Policy Initiative’s team of experts.

The application deadline is 22 December 2021, at 17:00 PST, and the new class will be announced in March 2022.

The Global Innovation Lab for Climate Finance identifies, develops, and launches innovative financial instruments that can drive billions in private investment to action on climate change and sustainable development. The Lab won the 2021 UN Global Climate Action Awards and is funded by the German, Swedish, and UK governments. Climate Policy Initiative serves as Secretariat.

Júlio Lubianco
Communications
julio.lubianco@cpiglobal.org