Finance for Resilience

toggle nav

Summary

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.

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.

LATEST TWEETS

BACKGROUND

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.

CRITERIA





To qualify, FiRe interventions must meet the following criteria:

1. Be relevant to climate, clean energy, green growth or sustainability.

2. Hold the promise of an incremental $1b per annum of investment in the medium term (~3 years).

3. Be actionable – i.e. contain concrete milestones and metrics.

4. Be an intervention not a report, conference, project or fund.

5. Have one or more Champions willing to take the lead in preparing and presenting the idea, and then implementing it.



Interventions





FiRe Priorities 2014/2015

Workstream: Securitisation

Mainstreaming four types of green bonds

Catapult volumes of four green bond types to the next level through the elimination of gating items.

Champion: Suzanne Buchta
Managing Director
Green Debt Markets
Bank of America Merrill Lynch

Debt fund for prepaid energy access

Create a debt fund to scale prepaid energy access by financing working capital for energy service providers.

champion2

Champion: Simon Bransfield-Garth
Chief Executive Officer
Azuri Technologies

Workstream: Scale & Aggregation

Business Renewables Resource Centre

Set up a non-profit business renewables resource centre to enhance non-energy company clean energy procurement.

Champion: Jules Kortenhorst
CEO
Rocky Mountain Institute



Accelerating energy efficiency financing

Fire up finance for energy efficiency using capacity building for energy audits by local commercial and development banks.

champion2

Champion: Josue Tanaka
Managing Director
Energy Efficiency
EBRD



Workstream: Risk Management

Monoline guarantees for green bonds

Establish monoline guarantees for green bonds by raising equity finance for dedicated entity.

Champion: David Stevens
CEO
AMF Guarantee




Global Energy Efficiency and Renewable Energy Fund 2.0

Leverage public finance in multiple layers to bring clean energy to emerging markets applying a first loss mechanism.

champion2

Champion: Cyrille Arnould
Head
GEEREF
European Investment Bank




FiRe Finalists 2014/2015

Workstream:
Risk Management

Geothermal drilling output insurance

Launch geothermal drilling output insurance to exploit large untapped resources of a low-carbon energy source.

Champion: Julian Richardson
Chief Executive Officer
Parhelion Underwriting





Make power plants bankable with insurance

Make power plants bankable with insurance with a dedicated re-insurance fund freeing up capacity of existing PPA insurers.

Champion: Andrew Gaines
Managing Director
DeRisk

Workstream:
Scale & Aggregation

International Solar Investment Initiative

Develop the infrastructure to attract capital market investment, including standard contracts, best practices, and robust datasets.

Champion: Michael Mendelsohn
Senior Financial Analyst
National Renewable Energy Laboratory





100% Clean Access in Africa

Boost energy access in Africa with an integrated country-level framework that lays out the path to 100% clean energy.

champion2

Champion: Yariv Cohen
Chairman
Kaenaat

Workstream: Securitisation

Sunset Credits


Remove fossil fuel subsidies by implementing a tool that replaces them with credits for clean energy technologies.

Champion: James Collins
Senior Manager
Strategy Practice
Accenture




Sustainable Credit Rating System

Develop sustainable credit rating system to reduce borrowing costs for infrastructure projects that reduce energy demand and supply renewable energy.

Champion: Daniel Wiener
Chief Executive Officer
ECOS



The full list of the 26 proposed FiRe interventions for 2014/2015 and their champions can be found here here.

If you want to get involved in any of the listed interventions, please email Janis Hoberg.

RESOURCES





SUPPORTING ORGANISATIONS

The following organisations have endorsed FiRe and are supporting the initiative. To join this list of supporters, please contact us.

CONTACT US

Michael Liebreich, Chairman, Finance for Resilience, mliebreich@bloomberg.net

Janis Hoberg, Fellow, Finance for Resilience, jhoberg@bloomberg.net

 

© 2014 Bloomberg L.P. All rights reserved.