Latin American cloud forests, energy-saving street lights in Rio de Janeiro and sustainable cattle ranching in the Amazon will get a boost from new financial instruments to channel capital for tackling climate change, their backers said.
The Lab, a network of programs that incubates sustainable finance mechanisms, expects to attract an initial $855 million to six investment vehicles launched in New York on Wednesday, and is hoping to pull more private capital into its projects.
Barbara Buchner, a climate finance expert who directs The Lab, told the Thomson Reuters Foundation mainstream investors have shown growing interest in climate change projects in the past couple of years.
“The next challenge is to get them beyond the markets they’re now comfortable with,” she added, citing potential in land use, agriculture and adapting to climate change impacts.
The Lab, set up in 2014, raised $822 million for its earlier initiatives, with around half coming from private investors.