The Climate Finance Leadership Initiative (CFLI) was launched in January 2019 in order to accelerate private sector investment for climate solutions. The seven founder members have published this report “Financing the Low-Carbon Future” which examines the challenges and potential solutions to delivering the necessary financing for a sustainable low-carbon economy.
The report highlights five factors that are hampering progress:
- Proven investment models are not replicated at scale.
- Risks in emerging markets constrain low-carbon investments.
- Many low-carbon investments in key emitting sectors are not yet profitable.
- The transition from carbon-intensive business models may create financial and social risk.
- There is a lack of tools and incentives to align portfolios with a low-carbon future.