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Climate Finance

What is Climate Finance?

Climate Finance means investing in ways that directly contribute to mitigating climate change, support adaptation to climate change and drive sustainable development. This can include direct investments into renewable energy projects, driving the implementation of green lending programs in local banks, and investing in energy efficiency projects that offer big wins in energy savings while implementing climate-friendly alternatives.

Renewable Energy, especially Commercial and Industrial (C&I) Solar, has become an ideal segment for investment, as the advancement of technology coupled with the (now) lower price, means big wins for small and medium sized enterprises, who have a lot to gain from clean, cheaper energy.

Green Lending is lending that is dependent on environmental criteria for the planned use of the funds. To remain competitive, many banks must transition to green loans, and we support them in this journey with technical assistance and peer learning exchanges.

Energy Efficiency can be seen as the less attractive sibling in the climate-saving family, but efficiency measures such as LED lightbulbs, heating and cooling methods and proper windows can reduce emissions by 80% per year. Now that's pretty attractive.

Energy Access, be it to solar, wind, or hydropower, is a critical area for investment as developing markets are hungry for reliable, clean power due to unreliable grids, remote locations and unsafe alternatives for light, heating and electricity.

Climate Smart Food Systems are a must, as 20-30% of global GHG emissions are from food and agriculture globally. From drip-irrigation to high-tech weather-monitoring and harvesting, now is the time to invest in climate-smart technology.

Climate Finance Impact and Key SDGs:

Provide access to clean and affordable energy for low-income households
Boost economic development by providing reliable electricity to small businesses
Invest and catalyse investment in CO2 reduction

Why invest in Climate Finance in Emerging Markets?

Growing energy demand

30%

Growing world energy demand, driven by non-OECD countries, due to rising GDP and a growing population (+30% in 30 years)

CO2 emissions increase

30%

CO2 emissions are projected to increase quickly in developing countries (+30% by 2050) and to stabilize in developed countries (+5% by 2050)

Investment demand

1 trillion

USD 1 trillion of annual investments are required to meet the energy needs (roughly 50% increase) – the vast majority in developing countries

Climate Finance in the News

Our Climate Finance Team

Ewout van der Molen

Head of Climate Finance Link to full profile

David Diaz Formidoni

Head of Financial Institutions Investments Link to full profile

Vivian Kotun

Head of Business Development Link to full profile

Stefan Issler

Head of Direct Investments Link to full profile

Antonia Schaeli

Deputy Head of Direct Investments, Climate Finance Link to full profile

Sathish Dhanapal

Head of Energy Specialists Link to full profile

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