Search Climate Insights Directory

The Climate Policy Initiative (CPI) has introduced a methodology framework for developing Climate Finance Roadmaps to address a global climate investment gap estimated at USD 6.1 trillion per year by 2030. The framework is designed to identify suitable investors, necessary financial instruments, and regulatory measures to mobilize climate finance at scale. CPI intends to test this approach in pilot geographies and sectors and invites external stakeholders to adopt the framework or provide feedback to refine the living methodology.

The report outlines five key steps for developing financial instruments for climate adaptation: defining a clear resilience thesis, building pipelines with predictable cash flows, strategically structuring risk and returns through blended capital, cultivating local collaborations, and implementing robust impact measurement. It notes that while The Global Innovation Lab for Climate Finance has supported over 20 adaptation-focused instruments mobilizing more than $1.2 billion, the sector still faces challenges including high perceived risk, limited investor awareness, and difficulties in pricing climate risk.

The research finds that 36% of subsidized rural credit in Brazil from 2020 to 2024 went to properties that deforested after 2009, with public banks and cooperatives providing 91% of this volume. It highlights a recurring pattern of deforestation both before and after credit is granted and argues for a complete dissociation of public financial incentives from any form of deforestation to meet Brazil's 2030 zero-deforestation target.

The report provides a snapshot of the implementation of Brazil's Forest Code in 2024, focusing on the Rural Environmental Registry (CAR) and the Environmental Compliance Program (PRA). It highlights a steady increase in CAR registrations, reaching 7.65 million by November 2024, and notes that all states have now initiated the analysis stage, though this remains a significant bottleneck. While some states like São Paulo and Mato Grosso have made substantial progress through automation and legislative changes, only about 3.3% of all registrations nationwide have completed analysis. The report also details the expansion of the PRA, with 19 states and the Federal District having regulated it, and notes the increasing use of Terms of Commitment (ToC) for environmental recovery in states such as Mato Grosso and Pará.

The document evaluates four public-private partnership models for restoring Brazil's public lands: forestry concessions, ordinary tenders, common public service concessions, and Public-Private Partnerships (PPPs). While forestry concessions are the current standard due to the Public Forest Management Law (LGFP), they are limited by strict contractual requirements and high risk for the private sector. The report suggests that ordinary tenders could be effective for planting in fully protected areas, while common concessions and PPPs could offer better risk-sharing and flexibility if forest restoration is legally classified as a public service. The authors recommend legally designating restoration as a public service, improving risk management training for public agencies, and creating a specialized entity to manage environmental assets like carbon credits.

The report tracks green finance flows in India, noting that while tracked finance reached a record high in 2021/22, further scaling is required to meet climate targets. Mitigation finance remains primarily domestic, though international contributions rose to 17% in 2021/22. The document recommends coordinated action to scale finance, enhancing adaptation funding, developing a green finance taxonomy, and improving data reporting systems.

The report outlines a five-step framework for structuring adaptation-focused financial instruments: defining a resilience thesis, building a bankable pipeline, strategically engaging funders, cultivating local collaborations, and measuring impact. It highlights that while adaptation finance lags behind mitigation, private sector opportunities exist if perceived risks are managed through blended finance and simplified structures. Based on 17 adaptation-relevant instruments, the report notes that 12 successfully mobilized capital, totaling USD 1.2 billion, emphasizing the role of technical assistance and concessional capital in de-risking early-stage projects.

The report finds that 36% of subsidized rural credit in Brazil between 2020 and 2024 was directed to properties that deforested after 2009. Public banks and credit cooperatives are the primary providers of this credit, with some institutions showing high levels of exposure to deforesting properties. The authors argue for a complete dissociation of subsidized credit from any form of deforestation to meet Brazil's 2030 climate goals.

The document evaluates four legal frameworks for public-private partnerships in forest restoration: forest concessions, common tenders, common public service concessions, and Public-Private Partnerships (PPPs). While forest concessions are the current standard due to the Law on Public Forest Management (LGFP), the report argues that their rigid risk distribution and land category restrictions may hinder large-scale restoration. It proposes that common tenders are suitable for planting in strictly protected Conservation Units, while PPPs offer the most flexibility in risk sharing and financial support, especially for security and monitoring in high-risk Amazonian regions. The report emphasizes the need to legally characterize restoration as a public service to enable these alternative models and stresses the necessity of socio-environmental safeguards for Traditional Peoples and Communities.

The Climate Policy Initiative (CPI) proposes a structured approach to create Climate Finance Roadmaps that match the risk profiles of specific regions and sectors with the preferences and capacities of public and private investors. The framework moves from identifying financing gaps and assessing investment risks to determining the necessary capital mix and estimating future finance flows. It aims to provide actionable guidance for policymakers and capital allocators to mobilize finance at scale, particularly in emerging markets and developing economies (EMDEs) and underserved sectors like agriculture and industry.

India's tracked green finance for mitigation reached INR 3,712 billion (USD 50 billion) per annum in FY 2021/22, a 20% increase from 2019/20. However, this represents only approximately 30% of the annual finance needed to meet the country's Nationally Determined Contributions (NDC). Mitigation finance is primarily domestic (83%), with clean energy receiving the largest share (47%). Adaptation finance saw a nearly threefold increase to INR 1,092 billion (USD 15 billion) per year, dominated by government budgetary expenditure (98%) and focused on disaster risk management. The report highlights significant investment gaps, particularly in electric vehicles and on-farm agricultural adaptation, and recommends the development of a green finance taxonomy and enhanced private sector mobilization.

The report details a comprehensive methodology for mapping green finance in India, defining the scope of 'green finance' to include climate finance and environmental objectives like biodiversity and resource conservation. It establishes a framework for categorizing financial flows by source (domestic/international, public/private), instrument (grants, debt, equity), and sector (clean energy, energy efficiency, clean transportation, and climate adaptation). The methodology employs a variety of data sources, including government budgets, OECD CRS, and project-level databases, while applying specific assumptions such as a 70:30 debt-to-equity gearing ratio and the use of Rio Markers for international public finance. A significant portion of the document is dedicated to the granular classification of on-farm agricultural adaptation activities, categorizing government schemes into 'absolute', 'lower bound', and 'upper bound' based on their adaptation relevance.

The report finds that climate ambition among public development banks (PDBs) is plateauing and highly polarized. While some institutions have adopted comprehensive Paris alignment and net-zero targets, over half of the 170 tracked PDBs show limited-to-no ambition. This divergence is closely linked to enabling factors: high-ambition PDBs typically benefit from supportive government policies, developed financial systems, and active membership in multi-institutional networks. Conversely, minimally ambitious PDBs often operate in contexts with weak policy support and underdeveloped investment pipelines. The report concludes that ambitious PDBs generate higher volumes of climate finance as a share of assets and recommends leveraging multi-institutional networks to lift less ambitious banks toward leading standards.

The report identifies a 'triple gap' in planning, finance, and data regarding the transition of global agrifood systems to low-carbon and climate-resilient pathways. It highlights that agrifood systems contribute a third of global greenhouse gas emissions but receive less than 5% of total global climate finance.

The report details Brazil's recent efforts to institutionalize the bioeconomy under President Lula da Silva, highlighted by the creation of the National Secretariat of Bioeconomy (SNB) and the 2024 National Bioeconomy Strategy. It analyzes the bioeconomy through three lenses: biotechnological, bioresources, and bioecological, noting that the current national strategy primarily aligns with the bioecological vision. The document maps the roles of multiple ministries—including the Ministry of the Environment and Climate Change (MMA), the Ministry of Development, Industry, Trade and Services (MDIC), and the Ministry of Finance (MF)—in implementing this framework. It also identifies complementary regulations such as the Fuel of the Future Law and the Productive Forests National Program, while emphasizing the upcoming National Bioeconomy Development Plan (PNDBIO) as a key opportunity for cross-sectoral coordination.

The report analyzes private climate finance for Brazil's land use sector, focusing on thematic bonds, CBIOs, and BNDES operations. It finds that bioenergy and biofuels are the primary recipients of these flows, though thematic bond issuance for land use declined sharply between 2021 and 2023. The BNDES remains a central actor through direct credit, blended finance pilots, and the management of the Amazon and Climate Funds.

This report analyzes the landscape of climate finance for agricultural risk management in Brazil between 2021 and 2023, focusing on public and private instruments used to protect rural production from extreme weather events. It details the financial flows of key programs like PROAGRO and PSR, highlighting a shift toward increased spending on loss and damages due to intensifying climate events, and discusses the role of Agricultural Climate Risk Zoning (ZARC) in improving resilience and sustainability.

This report analyzes the rural credit policy landscape for climate finance related to land use in Brazil from 2021 to 2023. It examines the volume of climate-related credit, the criteria used for classification, the sources of funding, and the challenges regarding the verification and actual environmental impact of these financial flows.

This report by the Climate Policy Initiative analyzes the landscape of climate finance for land use in Brazil from 2021 to 2023. It identifies rural credit as the primary source of funding but highlights significant gaps in sustainability verification and monitoring. The document outlines the roles of agriculture risk management, government spending, capital markets, and international cooperation, providing recommendations to improve transparency, align socio-environmental criteria, and leverage private investment to meet climate targets.

This report analyzes international development and cooperation finance flows for land use in Brazil from 2021 to 2023, identifying multilateral development banks and international governments as the primary sources of funding, with a strong emphasis on the forest sector.