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The report analyzes Indonesia's public finance levers for clean energy, finding that while IDR 12.4 trillion was provided between 2012 and 2016, this is insufficient to meet the 2025 target of 23% renewable energy in the primary energy mix. It identifies key barriers to private investment, including high financing costs and a lack of long-term debt, and argues that capital injections into local development financial institutions (DFIs) like SMI and the use of guarantees are more effective at leveraging private capital than direct budget appropriations. The report recommends adjusting tariff structures to ensure project viability and expanding the role of DFIs to bridge financing gaps.

The report outlines critical knowledge gaps across four themes essential for achieving SDG 17 and the broader 2030 Agenda. It emphasizes the need for research on the relationship between quality of government and sustainability outcomes, the development of tools for policy coherence, the removal of barriers to technology transfer in least developed countries, and the creation of empirical metrics to evaluate the effectiveness of multi-stakeholder partnerships.

The document details a high-level dialogue on the disparity between 'gray' finance (subsidies and investments driving deforestation) and 'green' finance for forest restoration. It highlights the systemic barriers facing small-scale forest enterprises, the need for better supply chain transparency to avoid stranded assets, and the potential for innovative financial models—such as blended finance and carbon monetization—to accelerate the goals of the New York Declaration on Forests.

The report explores how to attract private capital for soil remediation by leveraging the increase in land retail price and business opportunities following cleanup. It provides 17 case studies on blended finance instruments, noting that private participation is less compelling when land value capture is low or revenue streams are uncertain, necessitating public funding. This work is part of a broader project to utilize green finance vehicles to manage risk and fund soil remediation.

The Smallholder Forestry Vehicle (SFV) is a proposed financial instrument designed to scale smallholder forestry in Africa by aggregating tree production contracts into a Special Purpose Vehicle (SPV). By separating the high-risk establishment and harvest phases from the lower-risk growth phase, the SFV aims to lower the cost of capital and attract institutional investors. A proof-of-concept facility targeting US$ 35 million in coastal Kenya is proposed to restore 5,000 hectares of degraded land and provide climate-resilient savings to over 16,000 households. The analysis suggests that with concessional debt and first-loss equity, the vehicle can achieve a gross internal rate of return (IRR) of 11.1%. Long-term goals include expanding into Greater East Africa and mobilizing up to US$ 8.5 billion in initial investment to meet regional land restoration targets.

The Smallholder Forestry Vehicle is a proposed financial instrument designed to enable forestry companies in Africa to access long-term, low-cost finance by aggregating smallholder tree production contracts into a Special Purpose Vehicle (SPV). By separating the high-risk establishment and harvest phases from the lower-risk growth phase, the vehicle aims to attract institutional investors, including pension funds and impact investors. A proof-of-concept facility targeting US$ 35 million in coastal Kenya is proposed to demonstrate risk-adjusted returns and climate resilience benefits, such as land restoration and diversified income for farmers. The analysis suggests that the instrument can leverage significant private capital and be replicated across other East African nations to meet land restoration targets.

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 highlights a pipeline of 38 green infrastructure projects in Indonesia for 2018-2019, ranging from a USD15m solar project to a USD6bn high-speed rail development. It emphasizes the role of green finance, specifically green bonds and the world's first sovereign green sukuk, in bridging a USD150bn infrastructure investment gap. Key sectors identified include low-carbon transport (rail and BRT), renewable energy (geothermal and hydropower), sustainable water and waste management, and the built environment (certified green buildings).

The report argues that international public climate finance must shift from a project-finance focus to a financial system development focus to effectively support Nationally Determined Contributions (NDCs). It identifies key barriers in developing countries, such as short-termism in banking and volatile capital flows, and suggests that public actors should scale up blended finance and de-risking instruments. The authors introduce a 'Climate Finance Systems Framework' to map the interactions between public providers, private investors, systemic enablers (like regulators), and service providers, aiming to identify leverage points for scaling finance flows.

The research paper advocates for a systems approach to climate finance to move beyond linear data tracking and address the complexities of developing country financial markets. It introduces a framework that categorizes actors into public finance, private finance, systemic enablers, and service providers, mapping their interrelationships through financial flows, mandates, and information. The paper identifies systemic trends in developing countries—such as bank dominance, short-termism, and capital volatility—and demonstrates how specific systemic actions (like ESG disclosure mandates) can catalyze private finance. Finally, it uses social network analysis of 2013-2014 data to identify key influencers and connectors within the international public finance sub-system to improve coordination.

The research identifies a sustainable infrastructure investment gap of USD 18-36 trillion in developing countries, with critical needs in power generation, transport, and water. It analyzes the roles of various public finance actors—including bilateral aid agencies, multilateral development banks (MDBs), and national development banks (NDBs)—highlighting a systemic mismatch where the largest mitigation potentials in upper-middle-income countries lack access to concessional finance. The paper argues for a shift from project-specific finance to financial system development and the scaling of blended finance and risk-mitigation instruments to crowd in private capital.

The report identifies Sub-Saharan Africa, South Asia, and East Asia as high-impact regions for clean energy investment, with a subset of eight countries offering over USD 360bn in potential by 2030. It argues that while clean energy costs are falling, private investment is hindered by off-taker, currency, and policy risks. The authors recommend shifting blended finance from covering viability gaps to providing risk-mitigation instruments like guarantees and local currency hedging, and creating liquid, tradable assets through securitization to attract institutional investors.

The document outlines a methodology for identifying high-impact clean energy markets in developing economies based on private sector attractiveness, energy access, and climate relevance. It identifies Tier 1 countries—including India, South Africa, Kenya, and Rwanda—and analyzes their specific investment barriers, such as off-taker risk in India and currency volatility in South Africa. Additionally, it provides case studies on blended finance structures, ranging from project-level interventions like the Lake Turkana Wind Farm to fund-of-funds like GEEREF, illustrating how concessional capital and guarantees are used to leverage private investment.

The assessment finds that 'green' finance aligned with forest emission reduction is significantly outweighed by 'grey' finance that potentially drives deforestation. While some middle-income countries invest more domestically in REDD+ than they receive internationally, overall international public finance for forestry remains insufficient. Private sector investment in 'business as usual' farming and forestry is estimated at USD 168 billion annually, and while some financial institutions are adopting deforestation risk policies, transparency and mandatory enforcement remain low. The report suggests that blended finance and public sector tools are necessary to shift private capital toward sustainable land use.

The report assesses the potential for natural infrastructure to complement the Cantareira Water Supply System in São Paulo, Brazil. Using a Green-Gray Assessment, it finds that targeted reforestation of 4,000 hectares could reduce sediment pollution by 36%, yielding a 28% return on investment over 30 years by reducing water treatment and dredging costs. While forest restoration is likely to slightly increase dry season water flows through a 'sponge effect' and fog capture in cloud forests, the overall impact on annual water availability is estimated to be marginal. The document provides a roadmap for scaling these investments, suggesting blended finance models and improved landowner engagement to overcome risks and uncertainties.

The report finds that 'green finance' aligned with forest and climate goals is severely insufficient, totaling roughly USD 20 billion since 2010, and is dwarfed by 'grey finance'—investments in agricultural drivers of deforestation—which amounts to USD 777 billion. While results-based REDD+ payments have mobilized over USD 4.1 billion, disbursements remain limited. The authors argue that achieving zero deforestation by 2030 requires a dramatic shift of existing financial flows away from deforestation drivers toward sustainable land use and the strengthening of private sector ESG policies.

The 2017 Global Landscape of Climate Finance report finds that global climate finance peaked at $437 billion in 2015 before declining by 12% to $383 billion in 2016. The 2015 surge was primarily driven by private renewable energy investments in China, the U.S., and Japan. While solar and wind investments are largely on track for 2°C goals, other sectors like energy efficiency and adaptation remain significantly underfunded. Public finance is increasingly focused on energy efficiency, while multilateral development finance institutions (DFIs) are progressing toward their 2020 targets. The report highlights a strong preference for domestic investment, with 79% of finance remaining within the country of origin during 2015/2016.

The Matchmaker Service is a two-part instrument consisting of a subscription-based platform to match investors with city-level climate projects and a project preparation facility to improve project bankability. It specifically targets the financing gap for urban climate infrastructure in India, where municipalities often lack the capacity to create commercially viable projects and the creditworthiness to attract private capital. The report proposes a pilot project for electric bus fleets in Srinagar, Jammu and Kashmir, utilizing a blended finance model via a Special Purpose Vehicle (SPV) to reduce the high cost of capital associated with private operators.

The Climate Smart Cattle Ranching (CSCR) initiative proposes a 'New Company' to address barriers to sustainable beef production in Brazil, specifically targeting mid-sized ranchers in the Amazon who lack formal land titles. The model uses a blended finance approach—initially through a Participations Investment Fund (FIP) involving grants, concessional debt, and impact equity—to co-invest in pasture restoration and the adoption of Embrapa’s Good Agricultural Practices (GAP). By providing long-term capital (up to 10 years) and continuous technical assistance, the instrument aims to increase productivity from 0.5-0.7 to up to 4 Animal Units per hectare, potentially reducing emissions intensity by 90-95% per kg of beef. The strategy includes a phase-out of concessional capital in favor of commercial investment via a Credits’ Rights Investment Fund (FIDC) once a track record of receivables from deforestation-free beef off-take agreements is established.

The document explores the multifaceted meaning of 'bankability' in climate finance, arguing that it extends beyond traditional financial returns to include socioeconomic and environmental impacts. It provides lessons from CDKN's work in Africa, Asia, and Latin America, highlighting how bankability requirements differ between public and private funders and between mitigation and adaptation projects. The paper concludes with a guiding checklist for project developers to improve the success rate of proposals submitted to multilateral funds like the Green Climate Fund (GCF).