This Working Paper by the Green Climate Fund examines innovation as it relates to climate finance in developing countries. Innovation in the way we address climate challenges will be critical to averting catastrophic climate change.
The paper outlines the GCF's four pronged approach to overcoming barriers to innovation in climate finance; 1) establishing enabling policy and regulatory environments; 2) piloting new technologies, financial models and practices to establish proof of concept; 3) increasingly using scarce public resources to de-risk these opportunities to stimulate private investment (blended finance); and 4) enhancing the capacity of local financial institutions to develop local capital markets as a sustainable source of investment capital.
