Financing mitigation and adaptation measures


The term climate finance generally covers all financial instruments used by the public and private sectors for climate action at the international, national and subnational level. In climate policy discussions, climate finance is mainly provided by industrialized nations for the benefit of less developed countries.

The aim of climate finance is to promote low-carbon development and support in adapting to local risks caused by climate change. The Green Climate Fund (GCF), for example, is intended to serve as one of the main channels for multilateral financial transfers with 100 billion dollars to be annually mobilized by 2020.

Thanks to our years of experience, we at First Climate have an overview of the monetary flow within the climate sector, as well as the current developments in climate policies on national and international levels.

Efficient and effective climate finance

The financial experts at First Climate provide strategic and conceptual advisory services for climate finance, including:

  • Structuring funding programs
  • Designing and evaluating specific instruments
  • Analyzing financial flow for both financiers and recipients

 

Designing suitable climate finance instruments

The efficient use of scarce climate finance requires the instruments concerned to be specially designed. First Climate has extensive experience in the design and management of climate finance instruments. This includes carbon funds and programs  (“results-based finance”) as well as guarantee funds. We are familiar with the requirements of our investors and the needs of recipients – the prerequisites for delivering professional advice.

 

Involving the private sector with public climate funds

All signs point towards a sharp increase in climate-related spending in the coming years. According to the International Energy Agency, around $16.9 trillion US dollars will need to be invested into power generation and transmission to be able to meet growing energy demand by 2035. Around 60% of these investments will go into renewable energy sources. In this respect, public climate finance can help directing private capital towards more sustainable investment solutions.

A recent example of this is a guarantee program to promote renewable energy investments for self-supply by small and medium-sized businesses in Chile. On behalf of the Chilean Government, the German Development Bank KfW and First Climate supported the detailed design of the guarantee program that aimed at mobilizing bank loans for such projects. Similar guarantee programs could deliver a significant contribution to the growth of renewable energies in other countries.

Contact


Dr. Jochen Gassner

  jochen.gassner@firstclimate.com
  +49 6101 55 658 55

TÜV-Zertifikat "Geprüfte Kompensation"

Dr. Harald Diaz-Bone

  consulting@firstclimate.com
  +41 44 298 28 00