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This working paper analyzes the experiences of seven Development Finance Institutions (DFIs) between 2011 and 2014 to identify strategies for driving private sector investment in climate resilience, specifically within agriculture, water-intensive industries, and infrastructure.

The document examines the challenges and opportunities for geothermal energy in Indonesia, highlighting the Sarulla Geothermal Power Plant as a model for private sector involvement. It argues that while Indonesia has the world's largest geothermal potential (29GW), utilization remains below 5% due to regulatory hurdles, funding gaps, and high exploration risks. The Sarulla project, with a planned 330MW capacity, demonstrates how proven resources, public guarantees, and long-term feed-in tariffs can attract private investment and lower costs. The report concludes that public finance should be strategically focused on the high-risk exploration and field development phases to meet Indonesia's 2025 target of 7.6GW installed capacity.

The paper identifies policy, knowledge, and funding gaps as primary barriers to private investment in climate resilience. It finds that DFIs use a mix of technical assistance, long-term debt, and concessional finance to stimulate demand and reduce risk. Key findings vary by region: in developed countries, regulatory compliance and ageing infrastructure drive investment; in upper-middle-income countries, technical audits and market studies are critical; and in developing countries, intermediated financing through local banks and agricultural supply chains is essential to reach SMEs.

The Climate Policy Initiative outlines a framework for mapping climate finance flows to establish investment baselines, reveal interactions between public and private finance, and identify opportunities for policy improvement. The guide emphasizes tracking project-level primary financing and total investments over additional costs, while cautioning against double-counting by excluding revenue supports like feed-in tariffs and private R&D. The author notes that data gaps, particularly in the land use sector, remain a challenge, leading to a collaboration with the European Forestry Institute and Climate Focus to develop specific mapping tools for that sector.

Climate Investor One is an integrated financing mechanism designed to overcome barriers to renewable energy investment in low and lower-middle income countries. It combines a Development Fund for early-stage bankability, a Construction Fund to reduce debt costs and negotiation complexity, and a Re-financing Fund to attract institutional investors to de-risked projects. A pilot phase aims to deploy 300 MW of capacity and reduce 600ktCO2 emissions annually, with a goal to mobilize USD 2 billion in private finance by 2020.

The Green Climate Fund (GCF) identifies five high-impact investment priorities: climate-compatible cities, sustainable climate-smart agriculture, forest finance, resilience in Small Island Developing States (SIDS), and transforming energy generation and access. The analysis emphasizes a holistic approach that integrates mitigation and adaptation, particularly in Africa and Asia. It highlights the role of the Private Sector Facility (PSF) in mobilizing capital for adaptation—a historically underfunded area—and suggests using targeted calls for proposals to balance the investment portfolio.

The briefing argues that a compelling business case for large-scale adaptation investment in LDCs has not yet been established because most adaptation needs function as public goods with little financial return for investors. It introduces a framework analyzing the interaction between enabling environments, mobilization, and delivery, noting that even when private finance is mobilized, it may not reach priority sectors or could lead to maladaptation. The author concludes that private sector contributions to adaptation finance are likely to be limited and suggests exploring alternative pathways such as domestic SME incentives, improved tax collection, microfinance, and reduced remittance costs.

The document analyzes the 'accountability chains' of various private financial instruments to determine if they share the climate-related goals necessary to be counted as climate finance. It contrasts public finance, which has a continuous accountability chain focused on public goods, with private instruments like commercial debt, where investors prioritize financial returns over climate outcomes. While green bonds and philanthropy show aligned goals, equity and remittances present complexities regarding transparency, reversibility, and the nature of the benefits delivered.

The SEI Initiative on Climate Finance focuses on enhancing the delivery and effectiveness of climate finance for developing countries. It addresses four primary areas: defining and evaluating effectiveness to ensure long-term social and economic change; reforming the fragmented global finance architecture to reduce transaction costs; analyzing the role and viability of private finance in adaptation and energy transitions; and operationalizing the concept of 'intolerable risks' to better address loss and damage.

Kenya aims to expand its geothermal power capacity to 5,000 MW by 2030 to support low-carbon development and reduce reliance on hydropower. To achieve this, the government developed a Nationally Appropriate Mitigation Action (NAMA) designed to mobilise private sector investment and international technical support. While Kenya had an installed geothermal capacity of approximately 340 MW as of October 2014, the development of the NAMA faced hurdles including stakeholder buy-in, securing financial partners, and addressing 'additionality' questions. Lessons learned emphasize the importance of tailored communication and aligning the NAMA's scope with broader sectoral transformation.

Kenya developed a Nationally Appropriate Mitigation Action (NAMA) to accelerate geothermal power expansion by increasing private sector investment. The process highlighted several institutional and financial barriers, including a lack of stakeholder awareness and the rigid processes of Development Finance Institutions (DFIs). Key lessons include the need for tailored communication and a 'prospectus' approach to documenting NAMA options for donors. The NAMA aims to support 820 MW of additional capacity by 2020, contributing to a long-term goal of 5,000 MW by 2030.

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.

In 2013, global climate finance flows totaled USD 331 billion, a decrease of USD 28 billion from 2012. This decline was primarily driven by a USD 31 billion drop in private investment, largely due to falling solar PV costs. Public finance remained stable at USD 137 billion, with Development Finance Institutions (DFIs) acting as the primary public source. Mitigation accounted for 91% of total flows, while adaptation received 7% (USD 25 billion), all of which originated from public sources. The report highlights a significant gap between current flows and the estimated USD 1.1 trillion annual investment needed in the energy sector to limit global temperature rise to 2 degrees Celsius.

The briefing analyzes the six-year experience of the Climate Investment Funds (CIFs) as a 'living laboratory' to offer strategic advice for the Green Climate Fund (GCF). It highlights the need for balancing rapid fund deployment with detailed operational guidelines, the importance of evidence-based learning despite costs, and the necessity of clear theories of change for achieving transformational impacts. Additionally, it emphasizes the need for an early definition of risk appetite to avoid limiting investment instruments and the critical role of multi-stakeholder partnerships in project design and implementation.

The report examines the financing of Nationally Appropriate Mitigation Actions (NAMAs), emphasizing the need to move beyond reliance on international public funding toward leveraging private capital. It defines 'bankability' as the attractiveness of a project to investors based on its revenue-generating potential and provides a framework for designing such projects. Through eight case studies from countries including Morocco, Tunisia, and the Philippines, the document illustrates the roles of public-private partnerships (PPPs), the importance of implementing bodies (such as Special Purpose Vehicles), and the necessity of risk mitigation tools like partial credit guarantees and power purchase agreements. The report concludes with recommendations for NAMA developers to engage the private sector early in the design process and for international stakeholders to disseminate best practices in private funding.

The IFC-PPCR project in Nepal aims to build climate resilience in the agricultural sector by incentivizing private actors to train farmers in improved agronomic practices and expanding access to climate-adaptive finance. The project targets 15,000 farmers growing rice, maize, and sugarcane in the Terai region. Key strategies include using PPCR grants to cover start-up training costs for agribusinesses and developing a risk-sharing facility to encourage local commercial banks to lend to the high-risk agricultural sector. While agribusinesses see a business case through improved crop supply and quality, banks are motivated by market potential and regulatory mandates to increase agricultural lending. The project highlights the importance of early consultation and tailored capacity building to overcome public and private sector reluctance in Least Developed Countries.

The document outlines the state of climate finance negotiations leading up to COP19, focusing on the mobilization of US$100 billion per year by 2020 and the operationalization of the Green Climate Fund. It details the work of the Standing Committee on Finance, the challenges facing the Adaptation Fund due to falling carbon prices, and the need for 'enabling environments' in both developed and developing countries to attract and deploy investment. The guide emphasizes that providing financial assurance to developing countries is critical for securing their commitment to a new global climate agreement in 2015.

The document identifies various project-level barriers to climate investment, such as externalities, financial market imperfections, and regulatory risks, and suggests tailored financial instruments—including grants, concessional loans, guarantees, and equity—to address them. It emphasizes that financial support should target projects that are societally beneficial but commercially unattractive, and that such instruments must be supported by a consistent policy environment to be effective.

The paper examines 27 PPCFIs with approximately US$41.3 billion in capitalization, finding a strong bias toward mitigation over adaptation and a preference for established markets over least-developed countries. It identifies significant hurdles in attracting private capital at the fund level, noting that only two of eleven funds aiming for private capital achieved sizeable investment. The authors recommend standardizing processes, increasing private sector awareness, and leveraging the Green Climate Fund to coordinate the fragmented landscape of climate finance.

The executive summary of 'The Global Landscape of Climate Finance 2013' reports that global climate finance flows have plateaued at USD 359 billion, a figure significantly lower than estimated investment needs. The document emphasizes that public policies and resources act as the 'engine room' of the system, necessary to reduce risks and costs to attract private capital, which is essential for scaling low-carbon and climate-resilient growth.