The Paris Agreement last December has indeed been a turning point for climate finance, highlighting the necessity for financial institutions and investors to turn towards clean energy and low-carbon investment. Through the public and the private partnership, $100 billion per year has been committed by developed countries.
New finance instruments and regulations are now needed in order for climate finance to grow, and the Global Innovation Lab for Climate Finance has recently started supporting emerging ideas in the sector.
The lab was created in 2014, initiated by the US at the Climate Finance Ministerial of 2013, based on a public-private initiative embraced by the US, the UK and Germany. It aims at addressing the lack of financial instruments for climate finance and appealing to private investors.
The lab was endorsed by the G7 last year and a group of global representatives of governments, institutional investors, project developers, and multilateral banks as well as financial advisors take the decisions within the lab.
The Global Innovation Lab for Climate Finance has installed four criteria for the selection of the financial projects. Each project needs to be actionable – can be implemented in a few years, innovative, catalytic – mobilizes private investment, and transformative – has a significant impact and is replicable. The selection lasts one year and more than 90 applications have been submitted to the lab.
To learn more about the lab, click here.