Increasing the availability of and ease of access to finance for low-carbon development in emerging countries.
We aim to align global investment goals with our clean energy goals, and engage financial institutions to support a low-carbon future.
What Is Sustainable Finance?
RMI’s Sustainable Finance team brings deep expertise in capital markets, global banking, multilateral finance, and finance mechanisms to all of the institute’s work. We help RMI’s practice areas structure solutions that encourage capital to flow to the required clean energy investments, while also shaping the evolution of the financial system as a whole in support of the global transition to a clean energy economy.
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 to scaling up capital flows to meet this objective are significant, and quite different in advanced markets than in emerging markets. RMI is engaged in both of those contexts, helping to address various barriers. These include the level of risk and return of transactions, inadequate information among market participants, and insufficient scale of opportunities.
To support its activities, RMI has established a Sustainable Finance Advisory Board. This group of industry experts from diverse disciplines and institutions meets periodically to offer advice on different aspects of RMI’s finance-related work.
What We’re Doing
Sustainable Finance provides financial market insight and supporting best practices. The team identifies barriers to financing sustainability-related investments and offers innovative solutions to help access the necessary capital at the lowest cost. 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. We are building a specific focus on global climate finance. Our aim is to create an efficient and sustainable architecture of financial actors for mobilizing and delivering global climate finance, while also advancing the next generation of innovative climate finance instruments.
Encouraging the scale-up of climate finance flows by not only increasing “clean” flows but also reducing “dirty” finance.
Maximizing the impact of climate finance dollars by using auctions to allocate finance.