Climate-KIC project OASIS one of four new financial instruments endorsed by The Global Innovation Lab for Climate Finance

Climate-KIC’s OASIS project has been endorsed by The Global Innovation Lab For Climate Finance (The Lab) as one of four new financial instruments to catalyze billions for climate mitigation and adaptation in developing countries.

The Lab announced their endorsement for four new investment vehicles that are ready to pilot in developing countries. This announcement is in partnership with The Lab members, including the Danish, Dutch, German, United Kingdom and United States governments, Bank of America Merrill Lynch, Willis Group, development finance institutions, foundations, and other public and private investors.

OASIS responded to an open call which The Lab launched to identify and develop financial instruments which had a special focus on adaptation. The call which was opened in 2015 attracted almost 100 ideas. 

“Climate change threatens development gains made in water, agriculture, energy, and infrastructure around the world,” says Lord Bourne of Aberystwyth, Parliamentary Under Secretary of State, Department of Energy and Climate Change, UK, and Lab Principal. “Previous Lab interventions quickly mobilized resources for low-carbon energy. The new instruments offer the same promise for new sectors, helping communities meet development needs today and in the future.”

Research shows current global investment falls short of the need for new finance to mitigate and adapt to climate change. Private sector investment represents the largest source of global climate finance available, but investors face unique barriers to climate-friendly, low-carbon investment in developing countries, which they perceive as riskier. In fact, 92% of current private investment in climate-friendly projects originates in the same country in which it is spent.

“Global climate change is a critical issue affecting our world and future, and the private sector will play a key role in financing action,” says Elizabeth Littlefield, President and CEO, Overseas Private Investment Corporation, and Lab Principal. “To solve this complex issue as we promote sustainable development will require innovative thinking. The Lab is at the cutting edge, providing the early support for solutions that shift us toward new sectors and opportunities.”

“Initiatives like The Lab are introducing new innovative climate finance solutions to the financial industry,” says Purna Saggurti, chairman of Global Corporate & Investment Banking at Bank of America Merrill Lynch, and Lab Principal. “These solutions are helping to broaden investment opportunities in clean energy and other low carbon initiatives and priorities.”

OASIS

The Oasis Platform for Catastrophe and Climate Change Risk Assessment and Adaptation aims to provide access to transparent and standardized analytics to improve understanding and management of risks in regions vulnerable to extreme climate-related events. 

Context: Total economic losses to property and infrastructure from natural disasters averaged around USD 180 billion annually in the last decade, 70% of which are uninsured. Extreme weather events are expected to become more frequent and more severe with climate change.

Approach: Developed by Oasis Loss Modelling Framework and Imperial College London, the Oasis Platform is a set of tools that aim to offer a more transparent, robust, and comprehensive approach for analyzing and pricing risk from extreme events. The Platform could strengthen climate resilience by helping to narrow the gap between insured and uninsured losses, and extending the use of catastrophe risk modeling beyond the insurance industry for risk-informed decision-making.

Impact: The Platform could directly save re/insurers 25-50% in modeling costs, catalyze USD 1-9 million in new risk model development, and indirectly generate an estimated USD 1.4 to 6 billion investment in property insurance coverage.

Initial Commitments: Climate-KIC, the EU’s main climate innovation initiative, has supported OASIS since 2012 and has pledged to further support and co-develop the core platform as it is seen to be a key enabler for developing the adaptation services market.

The Lab

The Lab is a public-private initiative that identifies, develops and launches innovative financial instruments that can drive billions in private investment in climate action in developing countries. 

The Lab’s members include the UK, German, US, Danish, and Dutch governments, Bank of America, Merrill Lynch, Willis Group, development finance institutions, foundations, and other public and private investors. 

The Lab was endorsed by G7 in 2015 and helped catalyse more than USD 500 million in seed funding for climate adaptation and mitigation in developing countries. 

Other financial instruments selected

The three other financial instruments that The Lab selected are:

The Climate-Smart Lending Platform which aims to mainstream climate-smart agriculture metrics into the potentially USD 200 billion smallholder lending market

The Energy Efficiency Enabling Initiative which mobilise equity finance and deploy technical assistance for energy efficiency in developing countries like Mexico and Colombia

The Water Financing Facility which will mobilise large-scale domestic private finance and strengthen water utilities in countries subject to climate-related water stress. The Water Financing Facility has already secured a USD 3 million commitment from the Dutch government to begin in Kenya. 

 

 
News you may be interested in
news
Fresh boost to industrial symbiosis in Europe

EIT Climate-KIC has teamed up with five partners to...

Fresh boost to industrial symbiosis in Europe
news
Europe’s annual climate innovation summit to be ...

The 2018 Climate Innovation Summit, Europe’s leading event on climate...

Europe’s annual climate innovation summit to be held in emerging green finance centre Dublin
news
Pollution-sucking ‘smart’ trees bring clean ai...

Recent installations of the pollution-sucking CityTree in London and...

Pollution-sucking ‘smart’ trees bring clean air to London and Brussels
news
New project aims to mobilise Europe on ‘drawdown...

EIT Climate-KIC, together with the German Energy Agency (DENA)...

New project aims to mobilise Europe on ‘drawdown’
news
Mainstream climate change into post-2020 funding f...

EIT Climate-KIC is calling on the European Commission to...

Mainstream climate change into post-2020 funding framework, Climate-KIC urges European Commission
news
New European research-backed programme aims to inc...

EIT Climate-KIC is to launch an ambitious forestry innovation...

New European research-backed programme aims to increase sustainable forestry
news
EIT Climate-KIC Spain boosts new national public-p...

EIT Climate-KIC Spain is playing a major role in...

EIT Climate-KIC Spain boosts new national public-private partnership for climate action
news
EIT Climate-KIC aims for truly pan-European reach

Europe’s leading public-private innovation initiative focused on climate change...

EIT Climate-KIC aims for truly pan-European reach
news
EIT Climate-KIC CEO urges mayors to consider their...

Cities must consider the infrastructure and environmental legacy that...

EIT Climate-KIC CEO urges mayors to consider their role in boosting climate innovation
news
Solar start-up praises EIT Climate-KIC’s assista...

EU-backed start-up incubation programmes such as EIT Climate-KIC’s Accelerator...

Solar start-up praises EIT Climate-KIC’s assistance on clean energy live stream
news
European Commission report on Sustainable Finance ...

The European Commission’s High-Level Expert Group (HLEG) on Sustainable Finance...

European Commission report on Sustainable Finance affirms its commitment to climate action
news
EIT Climate-KIC innovators featured in Forbes 30 u...

Six EIT Climate-KIC innovators have been honoured in this...

EIT Climate-KIC innovators featured in Forbes 30 under 30 Europe List
news
New EIT urban mobility and manufacturing innovatio...

The European Institute of Innovation & Technology (EIT), the...

New EIT urban mobility and manufacturing innovation communities launched
news
European innovation body offers support to Portugu...

EIT Climate-KIC is calling on leading business, educational and research...

European innovation body offers support to Portuguese and Lithuanian regions
news
Europe’s first open innovation platform for clim...

A new EIT Climate-KIC supported capacity-building tool for climate-smart...

Europe’s first open innovation platform for climate-smart agriculture launched
news
New study finds Climate-KIC and wider EIT Communit...

A new study has found that EIT’s Knowledge and...

New study finds Climate-KIC and wider EIT Community delivering significant impact for Europe
news
Climate-KIC start-up SOLHO one of Europe’s Top 5...

Climate-KIC start-up SOLHO was one of four winners honoured...

Climate-KIC start-up SOLHO one of Europe’s Top 50 innovators
news
Innovative solutions sought for urban challenges

Climate-KIC’s Urban Challenges programme is seeking to support start-ups...

Innovative solutions sought for urban challenges
news
Climate-KIC supported start-up ZOLAR completes €...

• Sunstone Capital, Statkraft Ventures, Partech Ventures and Tim...

Climate-KIC supported start-up ZOLAR completes €4m financing round
news
Women entrepreneurs talk climate business in Bonn

What characteristics do people think of when they hear...

Women entrepreneurs talk climate business in Bonn
news
Climate-KIC kicks off innovation initiative for ci...

Comprehensive plan launched to support urban agglomerations as test...

Climate-KIC kicks off innovation initiative for cities
news
Climathon rallies an international city movement t...

More than 100 global cities gather for world’s largest...

Climathon rallies an international city movement to tackle climate change