Climate Finance Roadmaps

The Climate Policy Initiative (CPI) proposes a structured approach to create Climate Finance Roadmaps that match the risk profiles of specific regions and sectors with the preferences and capacities of public and private investors. The framework moves from identifying financing gaps and assessing investment risks to determining the necessary capital mix and estimating future finance flows. It aims to provide actionable guidance for policymakers and capital allocators to mobilize finance at scale, particularly in emerging markets and developing economies (EMDEs) and underserved sectors like agriculture and industry.

• There is a significant global climate finance gap, estimated at USD 6.1 trillion per year between now and 2030 in an average scenario, with needs increasing to over USD 7 trillion per year between 2031-2050.
• The methodology framework consists of seven sequential or parallel steps: identifying financing gaps, assessing investment risks and attributes, assessing investor characteristics and preferences, matching risks with preferences, identifying the required capital mix, estimating the potential future finance mix, and developing the final Roadmap.
• Investment risks are evaluated across five categories: technology risk (e.g., TRL), market risk (e.g., market size), governance risk (e.g., political stability), financing risk (e.g., currency risk), and physical climate risk (e.g., climate vulnerability).
• The framework distinguishes between 'real-economy actors' who invest directly in projects and those providing indirect funding; the roadmaps focus exclusively on real-economy/project-level investments.
• The required capital mix for a sector is determined by two primary factors: technology maturity, which dictates the need for concessional versus commercial finance, and financial market maturity, which affects the availability of private commercial capital in a region.
• The framework uses a matching system to assign suitability scores (from 1 to 5) to investor types based on how well their risk tolerance and preferences align with the identified risks of a specific region/subsector combination.

APA

Strinati, C., Alberti, C., Li, S., & Solomon, M. (2024). Climate Finance Roadmaps. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2024/12/Climate-Finance-Roadmaps.pdf

Chicago

Strinati, Costanza, Caroline Alberti, Shengzi Li, and Matthew Solomon. Climate Finance Roadmaps. Climate Policy Initiative, 2024. https://www.climatepolicyinitiative.org/wp-content/uploads/2024/12/Climate-Finance-Roadmaps.pdf.

Wikipedia

{{cite report |last1=Strinati |first1=Costanza |last2=Alberti |first2=Caroline |last3=Li |first3=Shengzi |last4=Solomon |first4=Matthew |title=Climate Finance Roadmaps |publisher=Climate Policy Initiative |date=December 2024 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2024/12/Climate-Finance-Roadmaps.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{strinati2024climate, author = {Strinati, Costanza and Alberti, Caroline and Li, Shengzi and Solomon, Matthew}, title = {{Climate Finance Roadmaps}}, institution = {Climate Policy Initiative}, year = {2024}, month = dec, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2024/12/Climate-Finance-Roadmaps.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }