climate-finance

The translation of a climate strategy into concrete policies and measures is one of the most challenging activities for a government. This requires a deep understanding of the technologies as well as the operational procedures, incentives and limitations of multiple stakeholders such as Financial Institutions, the commercial & industrial sector and the various government departments. A carefully crafted policy and related support mechanisms can achieve an enormous positive impact in the fulfilment of a country’s climate targets. EC&D personnel is specialized in the implementation of energy efficiency policies and has worked for several development organizations in such programs.

The development and financing of an EE or RE project requires the successful interaction of various stakeholders, usually with wildly different backgrounds and perspectives. While a project developer focuses on the work required to bring a project to realization, a financier will see it as a collection of risks with an associated price. EC&D leverages its wide network in both worlds to provide match-making services both for developers and financiers to bring projects to a successful close.

The first step for a financial institution is to develop a meaningful, yet practical sustainable investment policy. The importance of the process and stakeholder engagement required to develop such policy is often overlooked. Top management strategic guidance towards the company goals is the cornerstone of the process, which requires the involvement of multiple departments, such as the investment teams, risk, treasury, legal & compliance, etc. EC&D has developed key components of sustainable investment policies such as the eligibility requirements, MRV requirements, Quality Assurance, E&S screening criteria, etc.

Transparency and efficiency are two key principles in any Climate Finance activities. The first step is to have clearly defined eligibility and MRV requirements in the investment policy. These requirements will heavily depend on the asset class, type of investors, investees, etc. They generally cover technical aspects of the projects that demonstrate their positive climate impact, baseline definitions, constants used, internal and external reporting information, quality assurance practices, etc. The second, and even more important step is to establish a team with appropriate capacities to perform the required tasks. This team may be supplemented in the start-up phase by a team of external experts to develop the more intensive work. At this stage, the implementation of an impact data management system is also recommended as it allows reducing team workload. EC&D personnel has successfully performed the tasks above for leading climate funds and other organizations.