Climate Finance

Decarbonization Avenue : Climate Finance


Financing is a critical element for decarbonization efforts. In order to transform a large portion of economies, societies and infrastructure to their low carbon equivalents, enormous amounts of financial support will be required.

Such financing will belong to many categories - grants, loans, equity, with many variations within each. It is important to note that while developing low carbon technologies, we are trying to adopt technologies and solutions many of which may not be as efficient as conventional technologies, at least the way efficiency is measured right now. This is all the more reason why financial support is needed to bolster these low carbon and sustainable solutions until such a time they can sustain themselves in a competitive world.

A case in point is solar PV. Solar photovoltaic power plants of both types - utility scale and distributed solar PV - received financial significant support that allowed them to reach where they have today. While Germany and Japan heavily supported their rooftop solar systems through attractive feed-in-tariffs, large-scale solar panel production and utility solar power plants were provided significant financial support by the Chinese government. The result of such sustained financial support has resulted in solar PV becoming both technically and economically attractive by 2020. This should serve as an important lesson when the world considers how to transition to low carbon solutions that can become cost competitive in future.

A large and diverse set of actors populate the climate finance domain. Prominent among them are multilateral financing agencies, governments, large venture capital and private equity firms, large corporate groups and very high net worth individuals. Conventional financial institutions such as banks, mutual funds and pension funds are also increasing their focus towards climate finance.

During the 2020-2030 period, we can expect the current prominent stakeholder groups to increase their role in climate finance, with additional stakeholder groups (pension funds, regional banks etc.) joining these efforts.

Industries impacted

  • Agriculture & farming
  • Chemicals & petrochemicals
  • Construction & real estate
  • Fertilizers
  • Financial services
  • Livestock
  • Marine transport
  • Road transport
  • Textile & apparel
  • Waste management
  • Water

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Themes & Topics

  • Type of finance

    • Government sources

    • Corporate sources

    • Venture capital

    • Private equity

    • Angel & seed capital

    • Grants

    • Loans

      • Banks

      • Multilateral organizations

      • Government

  • Effective deployment of funds

    • Deployment policies & framework

    • Effective due diligence of fund deployment

  • Climate finance for

    • North America

    • South America

    • Europe

    • Asia

    • Middle East & Africa

    • Oceania

  • Targets

  • Learning from success stories & failures

  • Climate finance monitoring & analytics

  • Frameworks & approaches



 
  • Financing for:

    • Research & Innovation

    • Planning & Implementation

    • Maintenance

    • Education, training & capacity building

  • Destination

    • Governments

    • Businesses & corporate

    • Communities

    • Schools, colleges & universities

    • R&D organizations

  • Financing for specific decarbonization avenues

    • Renewable Energy

    • Energy Efficiency

    • Energy Storage

    • Agriculture & Food

    • Waste Management

    • Materials

    • Water

    • Mobility

    • Carbon capture & use

    • Industry-specific decarbonization

  • Use of IT & digital for climate finance

    • Monitoring & analytics

    • Coordination

    • Use of cloud services for optimizing processes