International and domestic private investment flows will be essential for developing countries to deliver on Nationally Determined Contribution (NDC) commitments made under the Paris Agreement. However, there are no quick fixes. For emerging economies to avoid reliance on development finance, private sector finance is an essential component for investment momentum into NDCs. To this end, the IKI Mobilising Investment (MI) programme explored approaches to encourage and facilitate private sector investment into NDCs in seven developing countries.
The IKI MI programme is supported by the German Government’s International Climate Initiative (IKI).
Much of the ambition in developing countries’ NDCs is conditional on receiving finance support.
Attracting the scale of private sector investment at the speed needed to respond to climate change and to meet NDC targets requires a multidimensional approach. This includes a mix of appropriate incentives, policy responses and suitable financial instruments which can support the expansion of market demand and support the business case.
The programme piloted strategies and approaches over a three-year period in Bangladesh, Dominican Republic, Ethiopia, Kenya, Peru, Philippines and Vietnam. Programme partners scoped opportunities for finance in a wide range of sectors, technologies, and business models to drive the following goals:
- Identify priority sub-sector(s) per country, map the current policy environment and barriers to scaling up financing and investment and identify key public and private sector stakeholders.
- Build financing and investment cases and facilitation strategies for the priority sub-sector identified.
- Develop and implement investment-enabling actions through providing support to public actors and the private sector to create favourable conditions for financing of NDC implementation.
- Capture and share common challenges, methods, lessons and good practices.
Climate finance flows, while increasing, are currently not sufficient to fund the scale of climate action required.
Partners: Led by SouthSouthNorth in partnership with PwC, ODI (as part of CDKN), and NREL (as part of LEDS GP)
Project funding: € 5 million
The project is comprised of the following Outputs with a range of activities:
Output I: Decision-makers have developed specific investment mobilization measures for a priority sector per country
- Preparation and presentation of NDC priority investment areas/sector selection per country
- Consultation, buy-in and mandate per country
- Technical Assistance for selection, design and/or implementation of levers per country
Output II: Pipeline for investment in a specific priority sector per country developed and/or expanded
- Analysis and presentation of NDC investment cases developed with the private sector per country
- Facilitating deal-flow through partnerships per country
- Establish de-risking and other measures to improve investment cases per country
Output III: Relevant actors scale up and scale out innovation from emergent practice
- Broad-based learning in regional and project groups. Country level interventions and outcomes are shown in this table
The programme piloted strategies over a three-year period in Bangladesh, Dominican Republic, Ethiopia, Kenya, Peru, Philippines and Vietnam.
Programme-level presentations & webinars
- In May 2019, the team hosted a webinar entitled Mobilising Investment For NDC Implementation – Project Overview, Progress And Emerging Lessons.
- The IKI MI team presented the IKI project at COP25 in December 2019. Find the introductory slides here.
- The team also hosted a webinar in April 2020 entitled Reflecting on the IKI Mobilising Investment Programme Learnings and Key Takeaways.
- For more information, see the Mobilising Investment Factsheet
The IKI MI Learning Programme
The IKI MI Learning Programme gathers, analyses and shares information on emerging strategies, directly supporting national and local government decision-makers to develop finance mobilisation measures for key sectors and scaling NDC implementation.
In collaboration with the LEDS Global Partnership, the programme facilitates learning and replication opportunities within and between countries, and within peer networks at regional, national and international scales. Three learning themes have been implemented to capture, synthesise and share knowledge across and beyond the project.