Climate finance roadmaps methodology framework to fill climate investment gaps

This methodology framework lays out a robust approach to building Climate Finance Roadmaps, including guidance on how to conduct analysis at various stages of the process to fill climate finance gaps. This includesadvice on data sources to estimate the investment gaps, variables to consider when assessing and matching investors’ preferences with risks and characteristics of different markets, and ways to estimate the capital mix required, among others. More specifically, the Climate Finance Roadmaps can help to identify:

• Most suitable investors in different markets, based on investors’ preferences and characteristics, risk profile of each sector and geography, as well as availability of private capital;

• Financial instruments required to close the investment gaps most effectively, based on technology and financial market maturity;

• Policy and regulatory measures needed to overcome investment barriers and attract climate investments at the scale required; and

• Robust methodology for closing climate finance gaps that can be applied by various actors in local and regional contexts.

Climate Finance Roadmaps can help public and private capital allocators understand their potential roles in different regions and sectors, thinking through their various investment challenges, coordinating action, and ultimately directing capital more effectively to collectively achieve a net-zero pathway. Climate Finance Roadmaps can also provide policymakers and regulators with a set of interventions needed in different regions and sectors to help them mobilize the right type of capital at scale. At the country level, CPI’s Climate Finance Roadmaps can support the development of more accurate net-zero investment plans which can be integrated in Nationally Determined Contributions (NDCs) and other national strategies and plans.

source :

https://www.climatepolicyinitiative.org/wp-content/uploads/2024/12/Climate-Finance-Roadmaps.pdf