Finance for Resilience
Accelerating finance for climate, clean energy, green growth and sustainable investment
The aim of Finance for Resilience (“FiRe”) is to identify the best potential climate, clean energy, green growth or sustainability (“CCEGGS”) financing solutions and help them get to scale. FiRe aims to help the international community reach a tipping point in climate and clean energy investment by ensuring that all key stakeholders are focused on a manageable number of scalable, actionable opportunities, within a dynamic, action-oriented process.
Please click here for the original draft concept note.
Please click here for Michael Liebreich’s VIP Comment on FiRe, published on 30th October 2013.
FiRe is designed to identify the best existing proposals to spur increased investment, rather than design new initiatives, and then to make sure they are scaled up as quickly as possible. These “FiRe Priorities” will be selected through an iterative annual process, which will identify and support the most promising ideas each year, and subject them to rigorous metrics. It is designed as an open-source platform, working with all existing CCEGGS practitioners, as well as the key multilateral implementation platforms, ministries and other external stakeholders.
Over the past few years, finance has moved to the centre of the debate on a range of sustainability-related issues, whether these are seen through the lens of climate, clean energy, green infrastructure, sustainability, natural capital, CSR, ESG or a number of other organising principles.
Consensus is emerging around a number of propositions:
1. The key to rolling out cleaner solutions lies in large-scale shifts in patterns of investment.
2. Governments alone cannot provide sufficient capital, so there is a need to attract private funding either independently or via blended “PPP” mechanisms.
3. There is no single solution to the diversion of capital flows into sustainable growth. A range of interventions is required.
4. Interventions need to be based on a systemic approach, with some targeting policies in energy and other industrial sectors, and others addressing financial, regulatory, legal, trade, educational and behavioural issues.
5. The bulk of the investment required will be North-North and South-South, but North-South will remain an important element.
6. The Green Climate Fund cannot be expected to act as the exclusive conduit, perhaps not even the largest conduit, for North-South climate finance. It will, however, be an important part of a public-private framework supporting such investment.
The FiRe process is designed to iterate on an annual cycle of characterisation (September-March), prioritisation (March-April), action and monitoring (April-March next year).
At each iteration, past FiRe priorities are triaged into completed, failed or to be continued, and additional FiRe Priorities are added.
The first FiRe Annual Meeting, where the 12 FiRe interventions that made it through the pre-selection in March will be presented and assessed, will take place in NYC on 9th April 2014, the third day of the seventh Bloomberg New Energy Finance Summit.