Phase 2 Synthesis Report

The Global Innovation Lab for Climate Finance conducted a Phase 2 analysis of seven climate finance instruments based on four criteria: actionability, innovativeness, catalytic potential, and transformative impact. Following this assessment, four instruments—the Agricultural Supply Chain Adaptation Facility, Climate Development & Finance Facility, Energy Savings Insurance, and Long-term Currency Swap—were selected to move into Phase 3 for detailed financial modeling and implementation planning. The report details the goals and analytical findings for all seven instruments, including those focused on renewable energy, energy efficiency, and agricultural resilience, while highlighting the need for public sector support and donor capital to mitigate risks and catalyze private investment.

• The Lab evaluated seven instruments against four overarching criteria: actionability (implementable in a few years), innovativeness (addressing risk, cost, and liquidity gaps), catalytic potential (mobilizing private capital at scale), and transformative impact (promoting structural changes in investment practices).
• Four instruments were selected to proceed to Phase 3 analysis: the Agricultural Supply Chain Adaptation Facility, the Climate Development & Finance Facility, Energy Savings Insurance, and the Long-term Currency Swap.
• The Renewable Energy Platform for Institutional Investors (REPIN) aims to mobilize private resources in emerging economies by facilitating transactions between institutional investors and commercial banks, with a pilot focused on South Africa.
• The Climate Development & Finance Facility (CDFF) targets low- and lower middle-income countries to reduce project development delays, but requires donor capital for start-up and a strategy to attract private investors.
• The Debt Fund for Prepaid Energy Access targets Sub-Saharan Africa to provide working capital to energy service companies, though it requires a credit rating metric for consumer portfolios to minimize default risk.
• The Global Renewable Independent Power Supplier (GRIPS) proposes replacing industrial diesel generators with renewable alternatives in Nigeria, Kenya, and South Africa, but faces hurdles from high fossil fuel subsidies.
• The Agricultural Supply Chain Adaptation Facility (ASCAF) targets Latin America and the Caribbean to improve climate resilience for small-to-medium producers, requiring an effective monitoring system to avoid 'maladaptation activities'.
• The Long-term Currency Swap instrument addresses exchange rate risk to lower the cost of capital for renewable energy in Asia, the Middle East, Latin America, and Sub-Saharan Africa, requiring donor contributions for first-loss tranches.
• Insurance for Energy Savings (IES) targets SMEs in emerging markets, with a pilot in Mexico, but may face obstacles due to complex regulatory environments and insurer reluctance.

APA

Climate Policy Initiative (2014). Phase 2 Synthesis Report. https://www.climatepolicyinitiative.org/wp-content/uploads/2015/02/The-Global-Innovation-Lab-for-Climate-Finance-Synthesis-Report.pdf

Chicago

Climate Policy Initiative. Phase 2 Synthesis Report. 2014. https://www.climatepolicyinitiative.org/wp-content/uploads/2015/02/The-Global-Innovation-Lab-for-Climate-Finance-Synthesis-Report.pdf.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Phase 2 Synthesis Report |date=24 November 2014 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2015/02/The-Global-Innovation-Lab-for-Climate-Finance-Synthesis-Report.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2014phase, author = {{Climate Policy Initiative}}, title = {{Phase 2 Synthesis Report}}, institution = {Climate Policy Initiative}, year = {2014}, month = nov, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2015/02/The-Global-Innovation-Lab-for-Climate-Finance-Synthesis-Report.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }