Sustainable Finance Initiatives

What's going to close the $7 trillion gap in climate finance? One of my favorite reports each year from Climate Policy Initiative has some ideas for scaling the investments needed to align with a net-zero pathway. To my mind, this is the best report each year on the state of climate finance. It shows you: -Where financial flows are going from (across public and private sources) -Where money is going to (in industry, location, and activity) -What our estimated needs are across sectors and regions -The mitigation potential to unlock across sectors -Strategies for scaling both public and private investment. Here's a look at the sector gaps we are seeing to date and how they can be overcome. Energy systems- need a 2.5-fold increase in mitigation finance to align with average 2024 to 2030 needs. This sector has the highest emissions reduction potential, requiring investment in renewables, grid modernization, and storage solutions. Transport- also requires an almost 2.5-fold increase in mitigation finance, alongside a significant shift away from high-carbon investments. With a mitigation potential of 3.2 GtCO2e, priorities include electric mobility, public transport expansion, and freight decarbonization. Buildings and infrastructure- mitigation finance must rise nearly 4-fold. This is sector is generally climate-aligned, but further investment can realize its 3.2 GtCO2e mitigation potential. Focus areas include efficiency upgrades, sustainable construction, and low-carbon heating and cooling. Industry- a nearly 24-fold mitigation finance increase, along with reallocation from high-carbon activities, is needed to tap the sector's 4.4 GtCO2e abatement potential. Key areas include clean hydrogen, low-emission manufacturing of cement, steel, and ammonia, and carbon capture, and storage. AFOLU- holds great untapped emissions reduction opportunities—mitigation flows should increase 64-fold from USD 18 billion to USD 1,170 billion annually through 2030 to realize this potential. There is also a need to improve definitional boundaries and enhance tracking of finance flows to this sector. Check out the full report here along with the data and dozens of interactive charts: https://lnkd.in/esqBmpfe #climatefinance #climateinvestment #netzero #decarbonization #climatepolicy #climateaction #emissions

🏛️ The EU just launched a game-changer for nature-positive innovation: Nature Credits. The new Roadmap towards Nature Credits sets the stage for a high-integrity, science-based market that rewards biodiversity restoration and ecosystem services, beyond carbon! 🚀 Why this matters for early-stage ventures: 📜 New revenue streams: Monetize biodiversity outcomes through certified credits. 💸 De-risking innovation: Public seed funding and blended finance to support early movers. 🧺 Market validation: Certification frameworks build trust with investors and buyers. 🤑 Why this matters for investors: 🌳 First-mover advantage in a new asset class beyond carbon. 🚰 Co-benefits like climate resilience, water security, and social impact. ⚖️ Policy tailwinds from CSRD, EU Taxonomy, and the Nature Restoration Regulation. “We have to put nature on the balance sheet.” - Ursula von der Leyen, President of the European Commission, July 2025 The EU is inviting stakeholders to co-create this market: a rare opportunity to shape the future of biodiversity finance. 📘 Read the full roadmap: https://lnkd.in/eb_4SW-8 📢 Let us know what this means for your venture or investments! #NatureCredits #BiodiversityFinance #ImpactInvesting #GreenEconomy #NaturePositive #EUCommission #ClimateFinance #Sustainability #ESG #RegenerativeEconomy Photo Credits: https://lnkd.in/ecFsCSTJ

2024 EU #InnovationFund calls launched today: €4.6 billion up for grabs for #batteries, #renewablehydrogen and other net-zero innovative projects. 🎯 𝐁𝐚𝐜𝐤𝐠𝐫𝐨𝐮𝐧𝐝 & 𝐨𝐛𝐣𝐞𝐜𝐭𝐢𝐯𝐞 With an estimated revenue of €40 billion from the EU Emissions Trading System between 2020 and 2030 (530 million ETS allowances for an estimated allowance price of €75/t CO2), the EU ETS Innovation Fund is one of the world's largest funding programmes for the deployment of net-zero and innovative technologies. It is a key tool of the EU #GreenDeal Industrial Plan. Since its start in 2020, the Innovation Fund (IF) has awarded €12 billion to more than 120 projects. 📢 3 𝐭𝐞𝐧𝐝𝐞𝐫𝐬 𝐥𝐚𝐮𝐧𝐜𝐡𝐞𝐝 𝐭𝐨𝐝𝐚𝐲 1️⃣ IF Call with a €2.4 bn budget, supporting projects in various sectors including renewable energy, storage, maritime, aviation and energy-intensive industry with lump-sum payments that cover up to 60% of total costs. In the 2023 call the Commission has selected 85 innovative net-zero projects in 17 EU countries plus Norway to receive €4.8 billion in grants, including e.g. projects that contribute to 3 GW of solar #photovoltaic and 9.3 GW of #electrolyser manufacturing capacity in the EU. 2️⃣ IF Auction with a €1.2 bn budget supporting renewable #hydrogen (#RFNBO) production with a fixed premium per kg H2. This is the 2nd EU #HydrogenBank Auction after last year's pilot auction. In an eFuel Alliance webinar in May, Johanna Schiele, Javier García Fernández (both European Commission) and I analysed & discussed the pilot auction‘s results (link to slides & recording in comments). In a previous post I contrasted rules of the 1st & 2nd auction (plus a H2Global Foundation auction). 3️⃣ IF Battery Call with a €1 bn budget offering lump-sum payments to #electricvehicle battery (component) manufacturing projects. This is the first of its kind and targeted to counter dependency from #China. ⏰ 𝐅𝐞𝐰 𝐦𝐨𝐧𝐭𝐡𝐬 𝐭𝐨 𝐬𝐮𝐛𝐦𝐢𝐭 𝐛𝐢𝐝𝐬 Interested parties are invited to submit proposals until February and April 2025, respectively. Do reach out to my colleagues Catherine Galano (L’Hostis), Stefan Rohm or myself to find out how we can help you. In previous IF rounds we have, for example, supported bidders in ... ◾ ... understanding whether projects are eligible and likely to score well ◾ ... project managing the application process and producing the application document (which requires a 70 page core document plus multiple annexes) ◾ ... estimating avoided CO2 emissions (following the >100 page methodology document) ◾ ... financial modelling / business plan generation. Also be aware that payments under the Innovation Fund don't constitute #stateaid and can be combined with other support mechanisms (under certain conditions).

India’s Green Bond Revolution: How the Country is Financing its Climate Goals During the 26th session of the Conference of the Parties (COP26), India expressed its commitment to intensify climate action by presenting five key elements of its climate action, known as the ‘Panchamrit’. At COP26, Prime Minister Narendra Modi demanded that rich countries contribute more – US$1 trillion in climate finance just for India over the next decade. The Climate Finance Working Group’s estimation that ₹118 trillion will be needed to address climate change, with only ₹64 trillion currently available and ₹54 trillion rupees unrestricted, necessitates innovative financing solutions. India aims to achieve net-zero emissions by 2070, indicating a long-term goal towards sustainability and combatting climate change, and green bonds are playing a key role in financing this transition. Climate finance is the financing of projects and activities that help to mitigate and adapt to climate change. This can come from public, private or alternative sources that can be used for mitigation or adaptation projects in various sectors and regions. What are Green Bonds? Green bonds are a debt instrument that raises funds for projects that have a positive environmental impact. Green bonds can be issued by governments, corporations, and financial institutions. According to the Print, India leads Asian emerging markets (excluding China) in green bond issuance Financial institutions and government agencies have used the instrument since 2015. Indian green bond issuances have reached a total of $21 billion as of February 2023.  The private sector was responsible for 84% of the total India’s debut in the sovereign green bond market: first deal landed a greenium! The sovereign green bonds were auctioned by the Reserve Bank of India in two tranches in January and February 2023, split equally between five and 10 year tenors. The bonds were oversubscribed by more than four times. According to Climate Bonds Initiative, Both tranches priced inside the yield curve, obtaining a greenium. The ‘greenium’, which is the lower yield/return investors will accept for the green label, has a substantial positive signalling effect. The Indian sovereign green issuance scores well on these aspects - The six basis point greenium, secured against these suboptimal conditions is better than the predictions of most analysts. The greenium could grow in the future as the number and volume of issuances increase. Green bonds have the potential to transform India’s climate finance landscape, but they require a holistic and collaborative approach from all stakeholders. Some key challenges 1/ Reducing the borrowing costs and ensuring the credibility of green projects through clear standards, regulations, disclosures, and verification mechanisms. 2/ Developing a supportive taxation policy 3/ Enhancing public awareness #climatefinance #greenbonds #zeroemissions #greenenergy #climatechange

I don’t actually work in finance. I work in trust. Without it, capital markets collapse. Clients walk away. Careers end in minutes. I've watched brilliant finance professionals destroy their careers in minutes.   Not because they lacked technical skills, but because they crossed ethical lines they didn't fully understand.   The CFA Institute Code of Ethics stopped me cold when I first read Standard III.A:   "Members must act for the benefit of their clients and place their clients' interests before their employer's or their own interests."   Before your employer. Before yourself. Always.   In an industry built on conflicts of interest, this isn't just radical. It's revolutionary.   The standards create crystal-clear boundaries: → Market manipulation? Prohibited. → Client suitability? Mandatory assessment. → Conflicts of interest? Full disclosure required. → Material nonpublic information? Can't touch it.   But what really struck me was Standard V.B.5: "Distinguish between fact and opinion."   In a world drowning in financial noise, this simple requirement changes everything.   200,000+ CFA charterholders worldwide have sworn to uphold these standards. Not suggestions. Requirements.   When everyone else chases commissions, you're bound to put clients first.   When others blur the lines, you maintain clear boundaries.   When the industry rewards complexity, you're required to communicate clearly.   Finance without ethics is just sophisticated gambling with other people's money.   But finance with a moral compass? That's how you build trust that compounds over decades.   The Code doesn't make you rich overnight. It makes you trustworthy for life.   And in finance, trust is the only currency that never depreciates.   Every time you're tempted to cut corners, remember: Your reputation takes decades to build and seconds to destroy.   The real edge in finance isn't finding the next alpha. It's earning trust and keeping it. Now, since we are on LinkedIn, I have a question for you: Are today’s finfluencers held to the same ethical standards as CFA charterholders? Should they be?   PS. If you made it this far, ♻️ share this with your network and 🔔 follow my profile!

"Nature credits are just glorified charity donations" is what most skeptics still believe. My experience building market mechanisms for biodiversity tells a completely different story.    When we founded CreditNature, many questioned whether biodiversity could ever be meaningfully valued. Today, I'm seeing corporations offer significant premiums for high-integrity nature credits that deliver verified outcomes.    Why? Because these aren't just feel-good purchases - they're strategic investments addressing material business risks.    Just yesterday, EU Commissioner Roswall unveiled a roadmap for nature credits across Europe, acknowledging the €65 billion annual funding gap for biodiversity that public money alone cannot fill. 🔗 https://lnkd.in/dgMXaSdZ   This validates what we've been demonstrating: properly designed nature credits create value far beyond their cost basis when they:    1. Connect directly to a company's operational footprint and supply chain resilience    2. Provide independently verified outcomes (not just activities)    3. Deliver multiple co-benefits from climate to community livelihoods.    In our projects, we've seen firsthand how rigorous measurement transforms perceived value. When buyers can clearly see the return on their investment - whether through reduced regulatory risk, enhanced brand equity, or supply chain security - price sensitivity dramatically decreases.    As I wrote in my recent blog on nature credits (https://lnkd.in/dbirJ7Wx), this is becoming an imperative for forward-thinking CEOs who recognise that nature risk is business risk.    What's your experience with the evolving nature credit market? Are you seeing similar value drivers in your sector?    #NatureFinance #BiodiversityMarkets #SustainableInvestment

Global Grants for Indian Climate Startups- India’s climate solutions are rooted in local realities — but their impact goes far beyond. From watertech innovation in Karnataka, to bioplastics and recycling in Maharashtra, to sustainable fabrics in Gujarat. From agri-waste transformation in Punjab and Haryana, to offshore wind tech rising off Tamil Nadu’s coast, to climate-resilient innovations in Odisha and West Bengal, and air filtration breakthroughs in Uttar Pradesh — I’ve had the privilege of meeting the founders building them — makers, engineers, scientists, and storytellers who are quietly reshaping the future. Through Bharat Climate Startups, I’ve been traveling across India to learn from these ground-up solutions — and I’m constantly reminded that while the problems may be global, so are the solutions. If you're building something in this space, here are 5 international grants and programs that Indian startups can apply to 👇 🔹 1. GSMA Foundation Innovation Fund for Climate Resilience & Adaptation 💰 Up to £100,000 (~₹1 crore) in equity-free funding 📌 For digital climate solutions improving resilience in underserved communities 🌱 Open to startups in South Asia, Africa, and Indo-Pacific 🔹 2. The Earthshot Prize Prize 💰 £1 million (₹10+ crore) per winner 📌 For scalable solutions tackling nature loss, water, air quality, waste, or climate 🌱 Indian startups are eligible — and have been finalists! 🔹 3. Echoing Green Fellowship 💰 Seed funding + 2 years of support 📌 For early-stage climate and social entrepreneurs 🌱 Open to Indian founders with bold ideas and deep impact 🔹 4. ACT For Environment – by ACT Grants (India) 💰 ₹20–50 lakh in catalytic seed grants 📌 For climate innovations in green mobility, clean energy, agriculture, circularity, and carbon removal 🌱 One of the boldest Indian philanthropic funds backing frontier environmental solutions 🔹 5. Global Innovation Lab for Climate Finance (by CPI) The Global Innovation Lab for Climate Finance 💰 Seed + pilot support + investor connections 📌 For ideas that unlock private finance for climate solutions 🌱 Several India-based innovations have already been selected 🔹 6. Imagine H2O Accelerator Program 💰 Non-dilutive funding + mentorship + access to a global investor network 📌 For startups working on water conservation, wastewater treatment, and climate resilience 🌱 Open to startups worldwide, including India 📩 Know someone working on a globally relevant climate solution? Or building one yourself? Message me if you want help navigating these grant calls — or just want to swap notes. Here's to building a vibrant support ecosystem for climate innovators! 💚 The world is watching — and India’s innovators are ready. 🌏 #ClimateAction #ImpactFunding #BharatClimateStartups #ClimateFinance

Climate Transition Planning Across Frameworks 🌍 Climate transition planning has become an essential component of corporate strategy and regulatory alignment. It reflects how businesses intend to adapt to a low carbon economy. Regulatory frameworks and market expectations are converging around the need for structured, forward-looking climate plans that go beyond disclosure and address implementation. Key frameworks such as CSRD, ISSB, SEC Climate Rule, GFANZ, and TPT now integrate climate transition planning as part of their requirements or guidance. Core elements include ambition and objectives, business model alignment, financial planning, operational changes, and engagement across the value chain. Governance structures, board oversight, incentives, and internal capabilities are also considered fundamental to effective transition planning. The ESRS E1 under the CSRD offers one of the most detailed structures. However, due to ongoing discussions and regulatory updates, interpretations may continue to evolve. Despite structural differences, the frameworks share enough common ground to enable a consistent foundation for companies building transition plans. Transition planning is becoming a baseline expectation. It supports credibility, resilience, and access to capital in a shifting policy and market environment. Source: BSR #sustainability #sustainable #esg #business

🌿 𝐂𝐚𝐧 𝐩𝐫𝐢𝐯𝐚𝐭𝐞 𝐟𝐢𝐧𝐚𝐧𝐜𝐞 𝐫𝐞𝐬𝐭𝐨𝐫𝐞 𝐛𝐢𝐨𝐝𝐢𝐯𝐞𝐫𝐬𝐢𝐭𝐲, 𝐨𝐫 𝐢𝐬 𝐢𝐭 𝐣𝐮𝐬𝐭 𝐫𝐞𝐩𝐚𝐜𝐤𝐚𝐠𝐢𝐧𝐠 𝐭𝐡𝐞 𝐩𝐫𝐨𝐛𝐥𝐞𝐦 🌍 A new study ( 👉 https://lnkd.in/e7HFBSpc) shows private equity and debt for biodiversity restoration surged to USD 1.5 billion in 2023, nearly doubling year-on-year. That sounds promising. And yes, private capital can help fill the vast funding gap for nature. But (and it’s a big but): it only works if the right conditions are in place. Enter the EU’s new Nature Credits Roadmap: 👉https://lnkd.in/eBmZ_hyC The goal? Mobilise private markets to close a €65 billion biodiversity finance gap across Europe. The risk? That this becomes a slick, market-based workaround without confronting the root cause: 🌍 We still spend €𝟑𝟕 𝐛𝐢𝐥𝐥𝐢𝐨𝐧 𝐚𝐧𝐧𝐮𝐚𝐥𝐥𝐲 ( 👉 https://lnkd.in/e7jRXTdj) on subsidies that harm biodiversity in Europe. Should we not start there? Unless we stop financing damage, we’ll forever be playing catch-up. Offsetting destruction with credits and restoration schemes that may look good on paper, but deliver little in practice. ✅ So again, can private finance help? 🟢 Yes, but only if: ❌ 𝐒𝐭𝐨𝐩 𝐟𝐢𝐧𝐚𝐧𝐜𝐢𝐧𝐠 𝐡𝐚𝐫𝐦 𝐟𝐢𝐫𝐬𝐭 Redirect harmful subsidies to restoration and protection 🛡️ 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐞 𝐛𝐞𝐟𝐨𝐫𝐞 𝐭𝐫𝐚𝐝𝐢𝐧𝐠 Credits must not permit more destruction elsewhere 🔍 𝐁𝐮𝐢𝐥𝐝 𝐬𝐭𝐫𝐨𝐧𝐠 𝐬𝐲𝐬𝐭𝐞𝐦𝐬 Clear MRV, ecological integrity, and independent standards 🌍 𝐑𝐞𝐬𝐩𝐞𝐜𝐭 𝐥𝐨𝐜𝐚𝐥 𝐬𝐭𝐞𝐰𝐚𝐫𝐝𝐬𝐡𝐢𝐩 Projects must deliver for biodiversity and communities 📉 Because right now, most private biodiversity finance (👉 https://lnkd.in/e7HFBSpc) is: • small • experimental • shaped by investor logic and not ecological reality As the authors put it: we risk “channeling money into projects that tick financial boxes, but fail ecological and social ones.” Let’s be honest: 🌿𝙽𝚊𝚝𝚞𝚛𝚎 𝚒𝚜 𝚗𝚘𝚝 𝚊 𝚖𝚊𝚛𝚔𝚎𝚝 𝚗𝚒𝚌𝚑𝚎. 𝙸𝚝’𝚜 𝚝𝚑𝚎 𝚏𝚘𝚞𝚗𝚍𝚊𝚝𝚒𝚘𝚗 𝚘𝚏 𝚎𝚟𝚎𝚛𝚢𝚝𝚑𝚒𝚗𝚐 — 𝚊𝚗𝚍 𝚒𝚝 𝚍𝚎𝚜𝚎𝚛𝚟𝚎𝚜 𝚋𝚎𝚝𝚝𝚎𝚛 𝚝𝚑𝚊𝚗 𝚑𝚢𝚙𝚎 𝚊𝚗𝚍 𝚑𝚊𝚕𝚏-𝚖𝚎𝚊𝚜𝚞𝚛𝚎𝚜. #NatureCredits #Biodiversity #EUClimatePolicy #SustainableFinance #FinanceAndNature

Open call 🇪🇺 The European Commission is inviting feedback on the future of the Sustainable Finance Disclosure Regulation (SFDR). Deadline: 30 May The Sustainable Finance Disclosure Regulation (SFDR) is a key piece of EU legislation that aims to bring greater transparency to how financial products consider environmental, social, and governance (ESG) factors. It requires asset managers, financial advisers, and other market participants to disclose how sustainability risks are integrated into their investment decisions and products. The goal: combat greenwashing, enable comparability, and steer capital toward genuinely sustainable activities. Now, the European Commission is reviewing the framework. This is an opportunity to share feedback and insights on how SFDR is working—and how it could be improved. Who should respond? •Asset managers & institutional investors •ESG & sustainability professionals •Legal & compliance advisors •Think tanks, NGOs & civil society •Reporting & data solution providers The consultation is open until 30 May 2025—and this will likely be the final public input before legislative revisions in Q4. Link here: https://lnkd.in/dxjHEktH #sfdr #law #sustainability