Partnerships for climate-safe financial innovation

**Our new model for coordinating national sustainable finance objectives!** Reaching national climate goals demands coordination on climate action across governments, financial institutions, corporates, and societies! We put together a gameplan for this all-hands-on-deck strategy to improving climate action and climate risk management: the consortium approach. This accessible guide will help national actors develop sustainable finance consortium in their countries! 🔍We show case studies from the successful implementation of sustainable finance consortiums in four diverse countries: Ireland, Japan, Mexico, and Nigeria.    🔍 The report focuses on the pivotal role these consortiums play as platforms where financial institutions and business corporations collaborate to pursue climate-related financial disclosures.   🔍 It delves into the experiences of these jurisdictions in setting up consortiums and leveraging them to support the adoption of climate disclosure frameworks, such as #ISSB and #TCFD. Key objectives of the report: 🎯 Learn from successful models: Extract valuable insights from the experiences of jurisdictions that have successfully developed consortiums related to sustainability and climate disclosures.  🎯 Understand benefits and challenges: Gain a nuanced understanding of the benefits and challenges associated with establishing #sustainablefinance consortiums.  🎯 Provide a roadmap for implementation: Offer a comprehensive roadmap for entities seeking to establish their own consortiums, facilitating the integration of #sustainability and #climate disclosure frameworks.   "The Consortium Approach to Sustainability Reporting” is tailored for ✅ Financial institutions ✅ Small and Medium Enterprises (SMEs) ✅ Large companies in the private sector ✅ Industry associations ✅ Stock exchanges ✅ Financial regulators ✅ Government authorities and other stakeholders who are committed to enhancing sustainability and climate reporting within their organizations and the broader business environment. https://lnkd.in/eAqd2jBE #climatefinance #cop28 #climateaction #sustainablefinance #climaterisk   UNDP UNDP Financial Centres for Sustainability (FC4S) United Nations Environment Programme Finance Initiative (UNEP FI)

𝐀𝐬𝐢𝐚 𝐟𝐚𝐜𝐞𝐬 𝐚 𝐬𝐭𝐚𝐠𝐠𝐞𝐫𝐢𝐧𝐠 $𝟐.𝟓 𝐭𝐫𝐢𝐥𝐥𝐢𝐨𝐧 𝐚𝐧𝐧𝐮𝐚𝐥 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐠𝐚𝐩 in achieving its Sustainable Development Goals (SDGs), especially in clean energy, resilient infrastructure, financial inclusion, and agriculture. 𝐓𝐫𝐚𝐝𝐢𝐭𝐢𝐨𝐧𝐚𝐥 𝐩𝐮𝐛𝐥𝐢𝐜 𝐟𝐢𝐧𝐚𝐧𝐜𝐢𝐧𝐠 𝐢𝐬 𝐧𝐨 𝐥𝐨𝐧𝐠𝐞𝐫 𝐬𝐮𝐟𝐟𝐢𝐜𝐢𝐞𝐧𝐭 𝐝𝐮𝐞 𝐭𝐨 𝐩𝐨𝐬𝐭-𝐩𝐚𝐧𝐝𝐞𝐦𝐢𝐜 𝐟𝐢𝐬𝐜𝐚𝐥 𝐬𝐭𝐫𝐚𝐢𝐧 𝐚𝐧𝐝 𝐠𝐞𝐨𝐩𝐨𝐥𝐢𝐭𝐢𝐜𝐚𝐥 𝐬𝐡𝐢𝐟𝐭𝐬. Blended Finance - which uses limited public or philanthropic capital to unlock large-scale private investment - emerges as a strategic, scalable solution. With over $4.5 trillion in private “dry powder” globally, Asia has both the urgency and the opportunity to reimagine how development is funded. 𝐁𝐮𝐭 𝐜𝐡𝐚𝐥𝐥𝐞𝐧𝐠𝐞𝐬 𝐫𝐞𝐦𝐚𝐢𝐧: 𝐟𝐫𝐚𝐠𝐦𝐞𝐧𝐭𝐞𝐝 𝐝𝐞𝐚𝐥 𝐬𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞𝐬, 𝐥𝐢𝐦𝐢𝐭𝐞𝐝 𝐛𝐚𝐧𝐤𝐚𝐛𝐥𝐞 𝐩𝐢𝐩𝐞𝐥𝐢𝐧𝐞𝐬, 𝐚𝐧𝐝 𝐫𝐢𝐬𝐤 𝐩𝐞𝐫𝐜𝐞𝐩𝐭𝐢𝐨𝐧𝐬. 𝐁𝐲 𝐜𝐨𝐦𝐛𝐢𝐧𝐢𝐧𝐠 𝐩𝐮𝐛𝐥𝐢𝐜 𝐨𝐫 𝐩𝐡𝐢𝐥𝐚𝐧𝐭𝐡𝐫𝐨𝐩𝐢𝐜 𝐜𝐚𝐩𝐢𝐭𝐚𝐥 𝐰𝐢𝐭𝐡 𝐩𝐫𝐢𝐯𝐚𝐭𝐞 𝐬𝐞𝐜𝐭𝐨𝐫 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭, 𝐛𝐥𝐞𝐧𝐝𝐞𝐝 𝐦𝐨𝐝𝐞𝐥𝐬 𝐝𝐞-𝐫𝐢𝐬𝐤 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭𝐬 𝐚𝐧𝐝 𝐜𝐫𝐞𝐚𝐭𝐞 𝐢𝐧𝐜𝐞𝐧𝐭𝐢𝐯𝐞𝐬 𝐟𝐨𝐫 𝐬𝐜𝐚𝐥𝐚𝐛𝐥𝐞 𝐩𝐫𝐢𝐯𝐚𝐭𝐞 𝐩𝐚𝐫𝐭𝐢𝐜𝐢𝐩𝐚𝐭𝐢𝐨𝐧 𝐢𝐧 𝐬𝐞𝐜𝐭𝐨𝐫𝐬 𝐭𝐡𝐚𝐭 𝐰𝐞𝐫𝐞 𝐨𝐧𝐜𝐞 𝐜𝐨𝐧𝐬𝐢𝐝𝐞𝐫𝐞𝐝 𝐦𝐚𝐫𝐠𝐢𝐧𝐚𝐥𝐥𝐲 𝐯𝐢𝐚𝐛𝐥𝐞. This includes all areas with untapped potential across India and Southeast Asia. India, with its strong institutional frameworks and policy-led financial infrastructure, is uniquely placed to harness this wave. Initiatives like 𝐅𝐀𝐒𝐓-𝐏, which aims to mobilize $5 billion toward Asia’s climate transition, are already demonstrating outcomes. In Gujarat, startups supported by GIFT City’s regulatory sandbox are creating sustainable debt products tied to climate action, while NBFCs are testing blended lending models to fund electric mobility and decentralized energy projects. In Maharashtra, early-stage funds are experimenting with micro-blended models in agriculture and dairy logistics, using carbon offset mechanisms to bring commercial value to sustainability. Delhi-based startups in fintech and insure-tech are leveraging risk guarantees to serve underbanked populations in rural belts—proof that catalytic capital can activate both inclusion and innovation. And yet, barriers persist. Project preparation remains underfunded, institutional capital is still cautious, and most deal structures are tailor-made - leading to high transaction costs and slow replicability. Blended finance will only achieve scale if ecosystems are built around standardization, local capacity building, and long-term public-private collaboration. Blended finance is not just a funding mechanism - it’s India's opportunity to align innovation with inclusion. With the right partnerships, we can turn investment gaps into gateways for sustainable growth.

Barbados has launched the world’s first debt-for-climate-resilience operation, generating US$125 million in fiscal savings aimed at enhancing water and sewage projects resilient to climate change. The model addresses both debt constraints and climate emergencies simultaneously, serving as a powerful example of #blendedfinance in action. Blended finance strategically uses public or philanthropic capital to attract private investment for projects with social or environmental impact. In this case, the collaboration includes the Inter-American Development Bank (IDB), European Investment Bank (EIB), and Green Climate Fund (GCF). Together, they've helped Barbados swap high-cost debt for more affordable financing. The loan is structured as a Sovereign Sustainability-Linked Loan (SSLL), with penalties for missed targets that will be reinvested in environmental initiatives. Prime Minister Mia Amor Mottley stated, “In the face of the climate crisis, this groundbreaking transaction serves as a model for vulnerable states, delivering rapid adaptation benefits for Barbados.” This isn't just a financial move; it symbolises optimism and resilience for developing nations facing similar circumstances. By focusing on climate adaptation, strategic partnerships can create win-win solutions for both the environment and local communities. For more information, see the original article below.

Financing is key to realizing this vision. We must align investments for water security with climate action and find innovative ways to mobilize new sources of funding. Blended finance instruments that strategically combine public and private capital can accelerate the deployment of climate solutions. Mechanisms like resilience bonds, environmental impact bonds, and blue carbon offset markets can help manage risk and generate revenues for sustainable water projects. Climate and development finance institutions must ramp up support and create dedicated water security and resilience funding streams. Advanced technologies, from AI to new modeling tools, can support climate risk-informed investments and resilient water planning. And governments have a responsibility to mainstream climate across budgets and regulatory frameworks, providing the enabling conditions for sustainable finance. The business case for these solutions is clear. Studies estimate a $1 trillion market opportunity for climate-smart urban water investments alone over the next decade. Forward-looking institutions are already pioneering innovative models to tap into this immense potential. But we need to accelerate and scale up these efforts dramatically. We must facilitate action coalitions between governments, businesses, investors, and local stakeholders. Partnerships and sharing of expertise will be vital. Developed countries must also fulfill their climate finance commitments to the developing world. #WaterSecurity #ClimateFinance #Sustainability #Innovation #Collaboration #ClimateAction #WaterResilience #GreenFinance #WaterForLife #ClimateChange #GlobalGoals #SDGs #InvestingInWater #WaterWarriors

🚨 The climate is changing -- so must our financial strategies! A recent report out of Green Finance Institute reminds us that "adaptation financing" is not just a bolt-on fix to climate impacts – it's about transforming our approach to ensure our communities and economies are resilient. 💼 Here's the current state of play in the UK: 👉 The UK requires an investment of £5-10bn yearly to adapt to climate change impacts. 👉 Public and private sectors must team up for this massive financial undertaking. 👉 Adaptation finance exists already! For example, 🌧️ Flood defenses, 🏗️ resilient infrastructure, and 🌾 sustainable agriculture are sectors where green gilts are being used. 💡 The broader opportunities: 👉 Adaptation finance can yield competitive returns, with "adaptation sectors" delivering 16.3% higher cumulative returns over five years compared to the market. 👉Financial services must embrace a dual lens: place-based resilience solutions (e.g. 🌊 physical flood barriers and natural flood management systems) and also the resilience of individual assets (to🌡 heatwaves, flood and drought for example) 🏦💸 The private sector can unilaterally accelerate climate adaptation financing where it comes to non-utility infrastructure, existing housing, and agriculture systems, making low-regret investments that deliver benefits today. But financial institutions still need authoritative direction from Government on future conditions and performance expectations for infrastructure amidst floods, heat, and drought. 🔐 To unlock adaptation finance, we need a combination of policy guidance and improved risk/return incentives. It's also time adaptation took a leaf from the mitigation playbook when it comes to dealmaking. #ClimateChange #Resilience #SustainableInvesting #FinancialInnovation #GreenFinance #ClimateRisk #ClimateAdaptation