How It Works
As nations and businesses work to tackle both climate challenge and development goals, access to finance has emerged as a critical element. Private investors – often supported by public policy and finance – are already channeling significant amounts of money into the low-carbon economy in countries around the world, but much more investment is needed. This is particularly true for developing countries, which often face difficulties attracting private investment at the scale needed to reach their sustainable development and energy access goals.
The Lab network accelerates well-designed financial instruments that can unlock billions for energy efficiency, renewable energy, sustainable transport, climate smart agriculture, and curbing deforestation, while also reducing private investors’ risks and improving their financial returns. A public-private partnership, the Lab brings together and catalyzes broader government and private sector efforts to scale up climate finance.
How it Works
1. Call for Ideas
4. Endorsement & Launch
Identifies (1) a strategy to phase out public financial support, thereby achieving market viability and (2) possible challenges to achieving its intended objectives and related management strategies.
In 2015 a sister initiative, the India Innovation Lab for Green Finance, was launched in coordination with the Indian, US, and UK governments. The Brasil Lab was launched in 2016 under the auspices of the Brazil-U.S. Climate Change Working Group, led by the Brazilian Ministry of Foreign Affairs and the U.S. Department of State. In its first two cycles, the Fire Awards program, originally called Finance for Resilience, was managed by Bloomberg New Energy Finance (BNEF). Climate Policy Initiative has served as Secretariat and analytical provider for the Fire Awards since 2015. In 2017, each of the four founding Lab programs came together under one umbrella of “the Lab.”