THE LAB'S IMPACT
In five years, the Lab has launched 35 innovative solutions to drive investment to action on climate change and sustainable development. Our annual impact report highlights the progress and key milestones achieved so far.
Lab solutions have mobilized $1.6 billion in sustainable investment to date. They represent a range of financial innovations that are led by enterprises, fund managers, market experts, and others, that are all structured to tackle investment barriers for climate projects in the most critical regions and sectors, including in:
Cities & transport
Water, land use & agriculture
Each Lab instrument is helping to achieve multiple Sustainable Development Goals.
Number of Lab instruments by SDG:
Instrument in Action: Long-Term FX Risk Management
Long-Term FX Risk Management, a 2015 Lab instrument, has hedged $240 million of climate-related investment in 11 countries. Many of the supported projects have multiple SDG benefits.
Lab instruments have successfully mobilized critical investment from the private sector, totaling more than $645 million.
More than 90% of measured private finance has come from institutional investors and commercial banks. A small amount has also come from private equity investors.
Private investors also co-invest in projects on the ground, which is more difficult to measure.
Instrument in Action: Climate Investor One
Climate Investor One, a financing facility for early-stage development for renewable energy projects in developing countries, has raised $555 million so far, more than half of which is private investment.
in original investment by Lab Member institutions
in investment catalyzed from other investors
Strengthened partnership between the public and private sectors builds capacity and knowledge to identify and deploy effective climate finance solutions.
Innovative & Transformative Solutions
Innovative, actionable, catalytic, and financially sustainable solutions reduce risks and barriers to investment in sustainable development.
Catalytic finance from Lab Members and the broader network enables piloting and implementation of transformative solutions.
Selected Lab ideas receive $250k in in-kind analytical and communications support from the Lab Secretariat, Climate Policy Initiative.
Ideas receive guidance and support from over 60 expert Lab Member institutions and investors in government, the private sector, development finance, and philanthropy. Lab Members contribute expertise, political capital, and financial capital.
After endorsement and launch, Lab instruments benefit from continued support from the Lab Secretariat, including bespoke analytical support and continued connections with the Lab investor network and beyond.
Find out more about the Lab process here.
Instrument in Action: CRAFT
CRAFT is the first commercial investment vehicle to focus on technologies and solutions for climate adaptation. The Lab helped refine the blended fund structure, and facilitated introductions to key investors and funders.
“Supporting the core principles of the NDF strategy, the Lab provides a good channel for NDF to identify innovative climate financing initiatives for further financing and development in the risky early phase.”Leena Klossner, Vice President, Nordic Development Fund
“By providing early stage analysis and market scoping for bold concepts, the Lab plays a vital role in bringing innovative mechanisms to market, and has moved forward vehicles that Convergence has been able to engage with at a later stage.”Joan Larrea, CEO, Convergence
“The Lab is a great example of how a focused, technical, and collaborative approach can identify and leverage innovative business solutions to some of the greatest challenges we face as society.”Karine Bueno, Head of Sustainability / CSR, Santander
“The Lab brings together a diverse set of stakeholders, skills, and perspectives, and through active knowledge sharing, discussion and debate, helps accelerate the commercialization of viable ideas.”Alan Synnott, Managing Director, BlackRock Real Assets