Legal & Regulatory News

BEIS: Publication: CFA publishes guidance to improve the gaps in the climate finance investment chain

On 13 June 2022, the Climate Finance Accelerator (CFA) published its summary findings and recommendations to improve liquidity in the climate finance chain. The publication provides tangible guidance on where resources should be focused in order to accelerate financing for climate mitigation to create a more sustainable future.

The CFA noted that low carbon projects must navigate three or four steps between project initiation and being financed, the "climate finance investment chain”. Through the analysis of over 500 project proponents, the CFA identified three key findings:

• There is a critical lack of financial and technical support available to projects in the early stages of the climate finance investment chain.
• Finance and access to finance are significantly deficient at the project initiation and project development stages.
• There are shortages of, or difficulties in, projects accessing technical and capacity building support.

Based on these findings, the CFA have provided three main recommendations:

• Organisations financing or otherwise supporting climate projects should understand where they fit into the climate finance investment chain and how they can help to make it more effective.
• Organisations should focus on supporting projects in the early stages of the climate finance investment chain.
• Organisations should work together and take a strategic approach to developing a pipeline of low-carbon projects.

Click here to access the publication.