$384 mn invested by Lab Members institutions, $1.4 bn invested by private investors
The Global Innovation Lab for Climate Finance (the Lab) is a public-private initiative that aims to drive billions of dollars of private investment into climate change mitigation and adaptation in developing countries by fast-tracking the development of promising ideas to implementation-ready projects through identifying, developing, and piloting transformative climate finance instruments.
Developed countries have committed to jointly mobilize USD 100 billion per year in climate finance to developing countries by 2020, from public, private, and alternative sources, in the context of meaningful mitigation and transparency of action. The Lab contributes to this collective effort by identifying and developing transformational proposals that will mobilize private investment at scale.
The Lab catalyzes this process by drawing on experience and expertise from around the world to identify, design, and pilot the next generation of climate finance instruments. These instruments provide concrete solutions to financing challenges faced in real projects, and can build new markets, attract new investors, and help to unlock billions of dollars in new climate-friendly investment in developing countries. Eligible countries are able to access support through the Lab network, not directly.
The Lab is part of broader government and private sector efforts to scale up climate finance. It aims to respond to the urgency of the climate challenge by accelerating promising climate finance proposals so that they are ready to implement. By quickly developing project-ready solutions that can be implemented in the short term it aims to complement existing processes. The Lab stands out for its goal of moving quickly from talk to action.
Bloomberg Philanthropies, Government of Canada, FinDev Canada, German Federal Ministry of Economic Affairs and Climate Action, UK Department for Energy Security and Net Zero, U.S. Department of State
With the completion of Phase 3 of the Lab Cycle, the progress of pilots will be monitored and reported on by the Secretariat on a bi-annual basis. The Secretariat will maintain contact with pilot implementers and continue to publicize new updates and announcements under the Lab brand. Permission to use Lab materials and branding will be agreed and clarified.
- In addition the Secretariat will provide ongoing support to proponents of instruments endorsed by the Lab, this support can include (but is not limited to):
- Leading ongoing conversations and connections with Lab members and others in the Lab network
- Active management of multi-donor relationships, especially when these donors are within the Lab network
- Ad hoc analytical support, within a budget determined with the proponents (depending on funding)
- Secretariat support provided for refining funding proposals
- Expertise provided for financial modelling, as funders, stakeholders and actors change in the pre-pilot or pilot stage
- Communications and external marketing support as necessary
The Lab Principals are high-level experts in climate finance from governments, pension funds, investment banks, project developers and development finance institutions in developing and developed countries. Their expertise and experience informs the identification and development of innovative finance instruments.
- Climate Policy Initiative serves as The Lab Secretariat.The Lab Principals have nominated Lab Advisors, who will support them in their role and contribute institutional expertise to the Lab in order to design, stress test, and advise on the identification of instruments.
- The Lab criteria for idea selection and development are the following:
- Actionable: An instrument is actionable when it identifies (1) the type of entity(ies) that could implement it, (2) the pathway towards implementation, including the timeframe, activities, and key milestones, and (3) possible challenges to implementation and related management strategies.
- Innovative: An instrument is innovative when it demonstrates the ability to address, directly or indirectly, barriers to private climate finance that (1) have not yet been addressed or (2) that will be addressed more effectively compared to other instruments in the market.
- Catalytic: An instrument is catalytic when it demonstrates potential to (1) mobilize private climate capital within a sizeable market, (2) be scaled up or replicated in other contexts and, (3) achieve socioeconomic, development, and environmental impacts.
- Financially Sustainable: An instrument is financially sustainable when it 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.
Projects should be focused on developing countries.