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This policy brief identifies five systemic barriers preventing African countries from accessing necessary climate finance and proposes specific interventions to enable a just climate transition.

This case study by the Climate Policy Initiative (CPI) proposes a 'Transitional Foreign Exchange (FX) Debt Platform' to enable foreign currency debt for the rooftop solar sector in India. It addresses the barriers that prevent small-scale project developers from accessing foreign capital, primarily the risks associated with currency fluctuations and the inability of these developers to access commercial hedging instruments due to poor credit profiles.

This executive summary explores the potential for a government-sponsored foreign exchange (FX) hedging facility to reduce the cost of renewable energy in India. It argues that high market-based currency hedging costs currently make foreign debt nearly as expensive as domestic debt, hindering the achievement of 2022 renewable energy targets. The document analyzes a proposed facility that would cover debt payments for USD loans, estimating its expected cost and the potential reductions in government support and energy costs.