Encouraging the scale-up of climate finance flows by not only increasing “clean” flows but also reducing “dirty” finance.
Global Climate Finance
We aim to align global investment with clean energy goals, and engage financial institutions and policy-makers to support a low-carbon future.
What is Climate Finance?
Climate finance refers to public and private financial flows for investments and activities that reduce carbon emissions or increase resilience to climate change impacts. The race to hold global warming to well below 2°C requires accelerating capital flows into clean energy while also accelerating the turnover of fossil energy capital stock.
Why It Matters
In the next 15 years, an estimated $90 trillion worth of infrastructure will be built globally; transforming global energy use depends on millions of incremental investment choices in favor of clean energy alternatives. The challenges of aligning finance with climate goals vary significantly in advanced economies and emerging markets. RMI is engaged in both of those contexts, developing tailored solutions that make efficient use of public capital and effectively motivate much larger pools of private investment.
RMI’s Climate Finance team brings deep expertise in capital markets, global banking, multilateral finance, and finance mechanisms to all of the institute’s work. We collaborate extensively with the private sector, governments, and NGOs to speed the flow of capital toward sustainable initiatives, including renewable energy and energy efficiency projects.
Climate Finance Program
RMI established a Global Climate Finance program in 2017 in recognition that the mobilization and smart allocation of finance is a critical enabler of the low-carbon transition globally. This program builds on RMI's legacy of working with disruptors, incumbents, and policy-makers to forge business-led, market-based solutions to climate change. We work to boost climate finance flows into developing countries by enhancing national capacity and deploying innovative financial instruments at the intersection of public and private finance. In advanced economies, our focus is on accelerating the retirement of fossil energy capital stock by managing the capital transition and avoiding stranded assets.
What We're Doing
Increasing the availability of and ease of access to finance for low-carbon development in emerging countries.
Maximizing the impact of climate finance dollars by using auctions to allocate finance.
Improving the capacity of low-income countries to unlock funding for green investment.
Photo courtesy Al Braden for the Sierra Club. Sandow Coal Plant in Rockdale, Texas, which closed in 2018.
Significant early and additional retirement of existing coal capacity is necessary to meet climate objectives.
Bidding on the Future: How Auctions Help Policymakers Unlock Climate Action
What Salad and Ice Cream Tell Us about Climate Finance
Reinventing Climate Finance: Four Levers to Drive Capital Stock Transformation, 2018
Net Climate Finance: Reconciling The Clean and Dirty Sides of the Finance Ledger
Auctioned Price Floors: Changing How We Invest in Climate
Underwriting 1.5°C: competitive approaches to financing accelerated climate change mitigation
Market Testing A Climate Finance Access Service
Market Testing a Climate Finance Access Service, 2018
Managing The Coal Capital Transition
Why Local Is Better than Global in the World of Low-Carbon Finance, 2018