Africa-Press – Uganda. It marks a significant milestone in climate finance with the launch of the FiCS Financial Innovation Lab (FiCS Lab), a groundbreaking initiative co-led by Finance in Common (FiCS), the Inter-American Development Bank (IDB), and Climate Policy Initiative (CPI).
This global platform is poised to empower public development banks (PDBs) in emerging markets and developing economies to mobilize private capital and bolster climate finance efforts.
Unveiled during the inaugural FiCS-G20 joint Rio event in collaboration with the Ministry of Finance of Brazil, FiCS, and Instituto Clima e Sociedade (iCS), the FiCS Lab represents a fusion of an incubator and task force, aimed at providing technical assistance, grants, and fostering innovation, knowledge exchange, and collaboration among PDBs. This multifaceted approach is tailored to address barriers hindering climate mitigation and adaptation financing.
The FiCS Lab is structured around three pillars:
Knowledge Sharing and Advancement: Facilitating the exchange of best practices and insights on financial innovation initiatives.
Standardization and Harmonization: Orchestrating structured dialogues to streamline approaches across PDBs.
Incubation of Innovations: Supporting the development of specific financial innovations through technical and financial aid.
Following the launch, working groups will convene to support the first two pillars, focusing on key workstreams such as climate-resilient debt clauses, debt-for-nature/climate swaps, domestic carbon markets, and currency risks. Pillar three will invite PDBs to submit proposals for financial innovations, with selected ideas receiving dedicated support and guidance from CPI.
The genesis of the FiCS Lab dates back to the 2023 FiCS Summit in Cartagena, Colombia, and was formally announced during COP28 in December 2023. This initiative is enshrined within the FiCS 2024 action plan and enjoys support from the Children’s Investment Fund Foundation (CIFF).
Nicole Pinko, Manager at CPI overseeing the initiative, underscores the critical role of PDBs in achieving climate finance targets, emphasizing the FiCS Lab’s role in facilitating climate action and fostering collaboration among stakeholders.
Adama Mariko, Secretary General of FiCS, extends an invitation to all PDBs to utilize the FiCS Lab as a dedicated space for knowledge sharing and pilot innovation incubation, vital for scaling up climate finance.
Anderson Caputo, chief of IDB’s Connectivity, Markets and Finance Division, highlights the FiCS Lab as a catalyst for collective action and innovation, emphasizing the urgency of addressing climate change through collaborative efforts.
Looking ahead, a promotional roadshow will amplify engagement with PDBs across regional development fora throughout 2024, amplifying the FiCS Lab’s reach and impact.
As the world navigates the climate crisis, the FiCS Lab stands as a beacon of hope, fostering collaboration, innovation, and collective action to accelerate climate resilience and sustainability through public development banks.
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