Climate Finance Innovation Facility
Welcome to the Climate Finance Innovation Facility
The Climate Finance Innovation Facility (CFIF) supported finance-industry engagement in the new climate sectors Renewable Energy and Energy Efficiency. The Facility provided developing country financial institutions with technical assistance and funding for the development of climate focused financial products and services.
A broad range of activities were eligible for support, ranging from feasibility studies, to market assessments and legal reviews. The overall aim of CFIF was to help mobilise a scaling up of financial flows into climate change solutions. More broadly, by encouraging early action within the finance community, the facility helped cultivate on-the-ground leadership amongst financial actors that can have replication effects across markets and geographies.
Initiators of the facility were the United Nations Environment Programme and the Frankfurt School of Finance & Management. Investment Committee members came from ADB, BMU, KfW and UNEP.
The project was finalised in the end of 2014.
CFIF provided developing country financial institutions based in the Asia-Pacific region with technical assistance and funding for the development of climate focused financial products and services. It thereby helped financial institutions innovate new products and services for climate mitigation sectors such as Renewable Energy and Energy Efficiency. The aim of the facility was to catalyze new investment into the climate mitigation sectors by helping first movers in the finance community to develop new products that had replication potential across markets and geographies. A broad range of business support activities were eligible for support, ranging from feasibility studies, to market assessments and legal reviews.
- CFIF provided funding support in the form of grants for eligible financial product development activities. The support covered up to 50% of actual costs, dispersed in milestone based tranches.
- CFIF provided direct technical advisory services up to a maximum of 20% of total support provided.
Financial Product Development Activities Eligible for Support
- Feasibility studies
- Market assessments
- Business planning
- Regulatory and environmental analyses
- Capacity building/Training
- Procedural development
- Other business support activities, as approved.
UNEP is working to create the policy and economic framework whereby low carbon technologies can increasingly meet the global climate challenge. The UNEP approach to sustainable banking is based on the need to enhance the linkages between environmental sustainability and economic decision-making which is emerging as a key nexus for public policymaking and market development. Changing attitudes and helping mainstream financiers to consider Sustainable Energy and low carbon investments are key components of this work and the starting point for its cooperation with the Frankfurt School of Finance and Management.
Frankfurt School is a leading private business school implementing consulting and training projects in emerging markets and developing countries via its International Advisory Services. It offers a broad range of services in the fields of consulting and training to build up and strengthen institutional capacities in the financial sector. Within the Competence Centre ‘Sustainable Energy Finance’ Frankfurt School has implemented Energy Efficiency and Renewable Energy projects worldwide. In Asia, Frankfurt School has undertaken a range of studies and activities regarding the promotion of Energy Efficiency and cooperated with the Indian Renewable Energy Development Agency.
Frankfurt School - UNEP Collaborating Centre for Climate & Sustainable Energy Finance is committed to facilitating the necessary structural change of energy supply and use around the globe by helping to catalyse private sector capital flow towards investments in Sustainable Energy and climate change mitigation and adaptation. Located at Frankfurt School, the Centre combines research of the highest calibre with an orientation towards practical application all the way to the final implementation. By implementing findings and instruments in the field where they will be most effective, the Centre will maximise its knowledge base and grow into a leading think tank on this topic.