Financing Inclusive Carbon Projects: Mobilizing Capital for Communities, Nature and the Climate
For innovators at the frontier of building more inclusive carbon markets, access to capital remains a critical constraint. This session will explore how development organizations, financial institutions, and investors are collaborating to de- risk investments and mobilize funding for inclusive carbon projects. Panelists will discuss challenges and opportunities in emerging markets, offering solutions and best practices for unlocking financing with the right balance of risk, patience, and return.
Framing this topic
This short section provides context for the event to ensure all participants, regardless of prior knowledge, are equipped to engage with the discussion.
Carbon markets can channel vital climate finance to local communities, helping to improve the lives and livelihoods of millions across the developing world. However, carbon projects that deliver benefits to low-income, underserved people in emerging markets are generally expensive to set up and operate. They also often face uncertainty about revenue and returns, as well as long time horizons for generating those returns. These complexities around costs and revenue mean that project developers struggle to secure affordable, fit-for-purpose capital that can tolerate the risk levels and timelines of inclusive carbon projects. Inclusive project developers need access to debt, equity, grants, and other forms of capital to meet upfront costs—long before their projects can earn revenue.
