Innovate 4 Climate -- 22-25 May in Barcelona, Spain -- provides a space for dialogue among government, multilateral, business, banking and finance leaders to consider best practice and innovation in climate finance and policy instruments. Organised by the World Bank, Fira de Barcelona, Climate Action and IETA, the two-day summit is preceded by a day of workshops and side events of which the Low Emission Development Strategies (LEDS GP) Finance Working Group leads two. CDKN is co-host of the Global Secretariat of the LEDS GP and we coordinate the Finance Working Group.

If you are a delegate or visitor to the event, or thinking about registering, come and see us.

The first LEDS GP-organised session is on Private Sector Risk Reduction Mechanisms for Investing in Climate Action. In addition to those products provided by development partners, the private sector offers a number of mechanisms to transfer risks, such as insurance products, fx hedging instruments, and third party guarantees, among others. Private sector representatives will present approaches and solutions, showcasing examples as to how they have been applied in the real world. The discussion will also include those risks that are currently too costly for the private sector and yet are not being covered adequately by development finance institutions and identification of alternative potential models for addressing risks across portfolios of projects. Conversations will also surround aggregation of cash flows via securitization and lessons learned from the residential real estate sector.

The second LEDS GP-organised session is on Innovative Public-Private Models to Support the Low Carbon Economy. Historically, development finance institutions and donor governments have been the primary providers of market or below market financing and grants in emerging markets. Given the scale of investment in renewable energy and energy efficiency required to meet the 2 degree goal, there is now the recognition that increasing sources of private sector investment will be needed. This session would explore the ways in which innovative finance facilities have been designed to bring in both public and private investors via blended capital structures. We would focus on new models that support the earliest stages of project development as well as small and medium-size projects which to date have not been the primary recipients of development finance. We will also look at how developing countries can work with the private sector on large-scale, climate investment projects to mobilize private sector capital into clean energy, transport, resiliency and other projects for the public good.

Private Sector Risk Reduction Mechanisms for Investing in Climate Action

Tuesday 23rd 16:00 – 17:00 Room 4

Palau de Congressos de Barcelona, (Montjuïc Venue). Avinguda de la Reina Maria Cristina s/n, 08004 Barcelona

Organiser/facilitator: Charlene Watson LEDS GP and Gloria Coleman CPI

Innovative Public-Private Models to Support the Low Carbon Economy

Tuesday 23rd 17:15 – 18:15 Room 4

Organiser/facilitator: Charlene Watson LEDS GP and Philippe Neves, PPIAF

Find out more about Innovate 4 Climate and how to register here.

Image: Barcelona, credit Jorge Franganillo