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The CPI’s Climate Finance Toolkit provides a framework for Ministries of Finance to align public and private climate finance with national priorities while managing debt vulnerability. It categorizes 14 financial instruments—ranging from grants and green bonds to catastrophe bonds and debt-for-climate swaps—allowing users to filter them by economic sector, risk type (credit, liquidity, market), and debt impact (direct or indirect). The tool is intended to support coordination between national governments, domestic public financial institutions, and external actors like multilateral development banks.

The document identifies significant structural, gender-based, and climate-related barriers that prevent women-led enterprises in Nepal from accessing formal and climate finance. Based on a survey of 200 enterprises, it highlights a reliance on personal savings and a lack of preparedness for climate shocks. It recommends a multi-stakeholder approach involving policy alignment, tailored capacity building, de-risking financial instruments, and the promotion of cooperatives to improve market power.

The document outlines a three-goal approach for climate finance vehicles to manage climate risk and build resilience. Goal 1 focuses on a five-step process to identify and manage physical climate hazards to align with international standards like the ISSB and Paris Agreement. Goal 2 guides the creation of an evidence-backed adaptation thesis to secure investor commitments, particularly for those targeting Multilateral Development Bank (MDB) funding. Goal 3 provides a methodology for designing impact measurement frameworks, including theories of change and indicator tables, to track resilience outcomes and avoid maladaptation.

The report identifies systemic constraints for women-led enterprises (WLEs) in Nepal, particularly in agriculture and forestry, where 70% of women are employed. A survey of 200 WLEs reveals that 65% have been affected by climate shocks, yet 88% rely on personal savings due to collateral gaps and misaligned financial products. While Nepal has a GESI-responsive climate policy framework, implementation gaps persist, with climate finance often remaining gender-neutral. The brief recommends tailored capacity building, the introduction of parametric insurance-linked credit, and the strengthening of women's enterprise associations to bridge the financing gap.

The Development Bank of Southern Africa (DBSA), supported by the Climate Policy Initiative and Promethium Carbon, has developed two financial instruments to scale the voluntary carbon market (VCM) in South Africa. A proposed carbon credit-backed bond would raise capital for project loans, with repayments consisting of cash interest and carbon credits. A Carbon Repo Facility would provide short- to medium-term liquidity by allowing developers and banks to sell carbon credits with an agreement to repurchase them later. These tools aim to bridge the gap between high demand for offsets—driven by the national carbon tax—and a limited supply of bankable projects caused by high early-stage costs and regulatory ambiguity.

The Uganda Development Bank (UDB) has developed a Currency Risk-Sharing Facility (CRSF) to mitigate the foreign exchange (FX) risks associated with borrowing in hard currencies (USD/EUR) and lending in Ugandan shillings (UGX) for climate projects. The CRSF employs a layered risk-sharing approach, combining a partial hedge (e.g., currency swaps) with a tail-risk FX guarantee to protect against severe UGX depreciation beyond a dynamic threshold. Financial modeling indicates that the CRSF offers a more affordable and stable funding cost (average 9.82%) compared to full hedging (10.96%) or unhedged exposure (average 8.39% but highly volatile). The instrument is designed to be replicable for other public development banks in emerging markets and developing economies facing similar currency mismatches.

The report analyzes the challenges and opportunities for financing nature-based solutions (NbS) in Indian cities, noting a heavy reliance on public funds and a lack of bankable project pipelines. It maps a wide array of financial and business mechanisms—ranging from green bonds and CSR funds to land value capture—and provides early recommendations to improve the enabling environment, project bankability, and the diversification of funding sources to enhance urban climate resilience.

The document addresses the financing gap for urban Nature-based Solutions (NbS) in India, where investment remains heavily dependent on public funds. It proposes a three-step guidance framework: identifying the enabling policy environment, leveraging financial and business mechanisms, and applying a nine-factor project evaluation framework. The guide maps existing Indian national and sub-national policies—including forestry, water, and infrastructure schemes—that can be leveraged for NbS. It also catalogues various financial instruments (such as municipal bonds, green bonds, and blended finance) and business models (including carbon credits and user-pay systems) to improve project bankability. A repository of nine global and domestic case studies, such as Chennai's municipal bonds for stormwater drainage and Chicago's Tax Increment Financing for green roofs, illustrates replicable approaches for Indian urban contexts.

The report analyzes the application of JETP Standard 9 in Maluku, Indonesia, using case studies from Air Buaya and Pasir Putih to propose place-based strategies for workforce transition and infrastructure development during the shift from diesel to renewable energy.

The briefing outlines a phased strategy for Jharkhand to transition from a mining-dependent economy to a green industrial base. It identifies four high-potential sectors—Clean Power, Green Molecules, Sustainable Mobility, and Green Equipment Manufacturing—which could generate USD 1.43 billion in annual state tax revenue. The transition requires a total cumulative investment of USD 41.4 billion, implemented across three phases from 2026 to 2070.

The report evaluates the climate transition of 594 OECD pension funds using Net Zero Finance Tracker data. While target-setting is improving, significant exposure to expansionist fossil fuel companies remains. The analysis finds that funds with formal climate targets and transition plans hold higher shares of clean energy and that robust regulatory frameworks in countries like the UK, Denmark, and the Netherlands correlate with stronger climate action.

The 2025 report on Brazil's Forest Code implementation reveals a significant increase in CAR registration validation, rising from 3.3% to 9% of the national database, driven largely by automation in states like São Paulo and Paraná. While federal governance of the SICAR system has improved through new intergovernmental coordination and the operationalization of Environmental Reserve Quotas (CRAs), progress remains uneven across regions. The Northern region shows limited progress, while the Southeast is the most advanced. A critical bottleneck remains the lack of verifiable land tenure information, with approximately 30% of registrations in Mato Grosso showing spatial overlaps. Implementation of the PRA remains limited, with a small number of Environmental Compliance Agreements (TCs) relative to the volume of properties requiring restoration.

The document describes how hedging instruments stabilize debt service and reduce refinancing risk for clean energy, transport, and infrastructure projects. It identifies key providers, including commercial banks and multilateral development banks (MDBs), and details the legal and technical requirements for implementation across shallow, emerging, and mature markets. It specifically notes that hedging premiums in emerging markets and developing economies (EMDEs) are high, typically ranging from 6% to 7% of the principal.

The report assesses the economic impact of India's power sector decarbonization on Jharkhand, projecting significant losses in state revenue, PSU earnings, and employment. It proposes a three-phase strategic framework (Enabling, Scaling-up, and Viksit Bharat) to transition the state from a raw-material supplier to a cleantech manufacturing hub. The analysis identifies four priority investment areas—clean power, green molecules, sustainable mobility, and green equipment manufacturing—estimating a total capital requirement of USD 41.4 billion to substitute lost fossil fuel revenues and create new employment opportunities.

The report finds that while OECD pension funds have significantly increased their climate target-setting and risk management since 2020, their portfolios remain heavily exposed to fossil fuel expansion. Pension funds often outperform other financial institutions in areas like policy engagement and emissions disclosure once climate goals are embedded in their governance. The analysis highlights that robust regulatory frameworks in countries like the Netherlands, Denmark, and the UK drive higher adoption of targets, and suggests that the relationship between asset owners and asset managers is a critical lever for driving decarbonization.

The report argues that India's iron and steel sector, which accounts for roughly 12% of the country's total greenhouse gas emissions, requires a coordinated Green Industrial Policy (GIP) to avoid high-carbon asset lock-ins and meet its 2070 net-zero target. Through plant-level and sectoral modelling, the analysis identifies hydrogen-based Direct Reduced Iron-Electric Arc Furnace (DRI-EAF) as the most viable long-term pathway. To make this technology investable, the report proposes a combination of time-bound capex and opex subsidies, a predictable carbon price trajectory rising from USD 10 in 2025 to USD 50 by 2050, and green public procurement. The study finds that with these interventions, hydrogen-based steel could achieve cost leadership and a 13.3% IRR by 2050, while conventional blast furnace-basic oxygen furnace (BF-BOF) pathways become financially unviable.

The report introduces the Just Transition Financing Framework (JTFF), a strategic model to manage the shift to a net-zero economy in fossil-fuel-reliant regions of India. Focusing on Jharkhand, the framework aims to prevent socioeconomic disruption by coordinating policy support, capacity building, project preparation, and capital mobilization. It outlines a governance structure involving a state-level Secretariat and a Project Management Unit (PMU) to channel diverse funding sources—including grants, concessional loans, and private equity—into targeted transition assistance for workers, communities, and industries.

The report finds that sustainable finance taxonomies generally suffer from incomplete sectoral coverage, a tendency to prioritize usability over technical rigor, and a lack of specific, measurable criteria for methane abatement. While the energy sector has the most extensive coverage, agriculture and waste sectors are inconsistently addressed. The authors propose a set of evidence-based best practices and technical screening criteria to improve the environmental integrity of green finance frameworks.

This executive summary outlines a practical roadmap for policymakers and taxonomy developers to integrate methane reduction objectives into sustainable finance frameworks. It identifies specific abatement measures for four high-potential sectors—energy, agriculture, solid waste, and wastewater—and establishes minimum requirements for leakage detection and repair (LDAR) to ensure environmental integrity and investor confidence.

The report examines the application of JETP Just Transition Standard 9 in Air Buaya and Pasir Putih, Maluku. It identifies risks for diesel plant workers in Air Buaya and severe cold-chain infrastructure gaps in Pasir Putih's tuna fishery. To address these, the authors propose a 'Self-Sustaining Workforce Transition Model' for worker reskilling and a three-phase financing strategy—moving from grants to de-risking instruments—to establish solar-powered cold-chain facilities.