New report: How can we ensure that climate finance initiatives are delivering the desired environmental impact ?
Based on the contributions of Innpact, the European Impact Investing Luxembourg (EIIL) network has published a report that explores the opportunities and challenges surrounding the initiatives designed to attract private investment into climate finance. The report highlights effective ways of linking the environmental impact with financial returns.
A common denominator of most climate finance projects is their innovative nature and therefore a relatively high financial risk, whether real or perceived. Embedding environmental (and social) impact requirements in individual financial instruments that are offered by public actors with the aim of attracting private investment into climate finance (e.g. risk mitigation tools), is likely to add to the level of complexity of the instruments, requiring additional due diligence efforts from investors.
