WHAT IS THE FINANCIAL INNOVATION LAB?/
The Financial Innovation LAB is a place to exchange ideas about financing techniques for climate change mitigation and adaptation investments.
The FIL main objective is to create investment vehicles and financial structures that maximize private sector leverage and optimize the use of donor’s funds, such as the (Clean Technology Fund, Global Environmental Facility, Green Climate Fund and more).
The FIL key premise is that public money should not be used for direct investing, but for de-risking. That is, donor’s resources should be carefully applied to absorb certain risks that constrain private sector involvement in green financing.
For this purpose, the FIL combines a variety of financial tools, such as guarantees, blended loans, first loss structures, insurance vehicles, etc.