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The briefing outlines strategies to mobilize domestic and international capital for Brazil's land-use sector, specifically focusing on the restoration of degraded pastures. It highlights the limitations of existing credit lines like ABC Recovery and proposes a combination of blended finance, risk-mitigation instruments (such as TCX and RCF), and technical assistance to achieve large-scale regenerative land use. The document details government targets, including the National Program for the Recovery of Degraded Pastures (PNCPD) and the Caminho Verde program, while emphasizing the need for stronger supply chains for native seedlings and better coordination between financial institutions and the real economy.

The report examines eight innovative financial instruments—including the Adaptation Benefit Mechanism, biodiversity credits, carbon taxes, carbon trading, credit guarantees, debt-for-nature/climate resilience swaps, pooled investment funds, and sovereign green/sustainability-linked bonds—to bridge the climate finance gap in developing countries. It identifies common barriers such as limited institutional capacity, lack of robust project pipelines, and underdeveloped local capital markets. The document emphasizes that while these instruments can signal a government's commitment to climate action, their success depends on a supportive enabling environment characterized by effective leadership, clear taxonomies, and robust climate data. For least developed countries (LDCs), the report suggests a phased approach, first strengthening basic financial and legal prerequisites before focusing on 'climate investability'. It concludes with specific recommendations for donors and development partners to provide technical assistance, anchor investments, and pilot projects to scale up private sector mobilization.

The report examines the application of blended finance to scale Nature-based Solutions (NbS), highlighting that while no single approach exists, tools like guarantees, technical assistance, and the engagement of direct beneficiaries are critical for de-risking investments. Through 12 case studies, it demonstrates how concessional capital can be used to build ecosystems, prove commercial viability, and mobilize private investment in nascent markets. Key examples include the Galápagos Debt Conversion and the Seychelles Blue Bond, which use credit enhancements to lower the cost of capital for marine conservation.

The report identifies financial barriers as the most severe challenge to green building implementation in Indonesia, citing a lack of dedicated financing instruments and high interest rates. While national regulations like GR 16/2021 have introduced green building standards, they are limited to very large buildings and exclude the residential sector, which accounts for 83% of building energy demand. A case study in Semarang demonstrates that combining building material retrofits with high-efficiency air conditioning can reduce cooling energy use by 32% to 44%, potentially saving USD 3.19 million annually. However, meeting green building mandates in Semarang over the next decade is estimated to require USD 223.7 million in investment.

The report explores 17 case studies of financial instruments—including green bonds, social impact bonds, crowdfunding, and viability gap funds—to determine their applicability to soil remediation. It argues that while private capital is attracted to sites with high post-remediation land value capture, projects with lower commercial potential require public de-risking mechanisms, such as subsidies, guarantees, or performance-based returns, to become viable.

The report identifies that high cost, short tenors, and variable interest rates of debt increase the cost of renewable energy in India by 24-32% compared to the US. It evaluates five recommended instruments to address these barriers: government bonds, infrastructure debt funds (mutual fund model), partial credit guarantees, partial risk guarantees, and exchange rate liquidity facilities. The analysis finds that government bonds offer the highest potential for cost reduction (up to 4.5 percentage points) and tenor increase (up to 10 years), while other instruments like partial credit guarantees can mobilize private capital from pension and insurance funds by enhancing project credit ratings to AA. The report also examines the impact of currency hedging costs, which currently neutralize the advantages of lower-cost foreign debt, and proposes a liquidity facility to mitigate this risk.