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The report details the design and pilot of the Energy Savings Insurance (ESI) instrument, aimed at stimulating energy efficiency investments for small and medium enterprises (SMEs) by mitigating the risk of underperformance. It focuses on a 2015 pilot in Mexico's agro-industry sector and outlines a replication strategy for Latin America, the Caribbean, Asia, and Africa.

The World Resources Institute (WRI) hosted a workshop on 3 September 2014 in São Paulo, Brazil, to discuss the role of public and private financial institutions in scaling up climate finance. The event focused on the opportunities provided by international funds like the Green Climate Fund (GCF) and Climate Investment Funds (CIFs), as well as the use of innovative financial instruments to mitigate risks and overcome barriers to low-carbon investments in Brazil.

This briefing by the Climate Policy Initiative (CPI) examines design options for the Private Sector Facility (PSF) of the Green Climate Fund (GCF) to better mobilize private capital for climate mitigation and adaptation. It argues that addressing both policy and financing risks through innovative instruments is essential to closing the green financing gap.

This executive summary, produced by the Climate Policy Initiative for the San Giorgio Group, analyzes the gaps between the demand for and supply of risk mitigation instruments in low-carbon and climate-resilient investments. It identifies significant bottlenecks in financing and policy risk coverage across both developed and developing markets and evaluates the potential of first-loss protection and policy risk insurance to bridge these gaps.

This guide by the Climate Policy Initiative explains the role of guarantees as financial instruments to transfer risk from borrowers or lenders to third parties, such as multilateral development banks or governments. It details the types of risks covered, the impact on borrowing costs, the institutional and regulatory capacities required for effective implementation, and the specific challenges facing the deployment of guarantees for climate-related projects in emerging and mature markets.

This fact sheet by the Climate Policy Initiative (CPI) analyzes the use of risk mitigation instruments by the World Bank Group (WBG) for climate-related projects. It concludes that while the WBG is a major provider of risk mitigation, these instruments have not been used at a significant scale for climate change, suggesting a need for a formal mandate to increase availability and the use of specific tools like guarantees and index-based instruments.

FSD Africa and UK-based Parhelion have launched a programme to de-risk early-stage geothermal energy development in Kenya and Ethiopia. The initiative focuses on creating a Geothermal Risk Transfer facility to mitigate drilling risks and a training programme to build the capacity of local African insurers to underwrite geothermal risks, thereby attracting investment and reducing reliance on international insurance markets.

This conceptual review by the Stockholm Environment Institute examines the role of risk and the cost of capital in utility-scale renewable energy investments, with a specific focus on Sub-Saharan Africa. It analyzes how risk mitigation and transfer (RMT) instruments can be used to lower the Weighted Average Cost of Capital (WACC) and improve the Net Present Value (NPV) of projects to attract private investment in developing countries.

This research paper by the World Resources Institute (WRI) examines how the Overseas Private Investment Corporation (OPIC) and the Export-Import Bank of the United States (Ex-Im Bank) use financial instruments to mobilize private sector investment for climate change mitigation and adaptation in developing countries.