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. 

 

 
Location
Articles you may be interested in
In The News
Why sustainable water management needs a systemic solution

Ensuring that fresh water is available, in a sustainable...

Why sustainable water management needs a systemic solution
In The News
Integrating nature with technology to strengthen climate adaptation

The European Commission released the new EU Climate Adaptation...

Integrating nature with technology to strengthen climate adaptation
In The News
EIT Climate-KIC is a key player in helping Europe adapt to climate change

EIT Climate-KIC welcomes the new EU strategy on adaptation...

EIT Climate-KIC is a key player in helping Europe adapt to climate change
In The News
Edinburgh: building climate resilient infrastructure and communities

A labyrinth of cobblestone streets, dimly lit and presided...

Edinburgh: building climate resilient infrastructure and communities
In The News
Residents of Kessel-Lo, Belgium, are invited to shape the future of their neig...

EIT Climate-KIC is working with the city of Leuven...

Residents of Kessel-Lo, Belgium, are invited to shape the future of their neighbourhood
In The News
Improved urban parks increase communities’ climate resilience

Start Park, a project led by citizens from Florence,...

Improved urban parks increase communities’ climate resilience
In The News
New accelerator programme geared towards systemic change secures key partners

Following its Open Call, the New Accelerator programme has...

New accelerator programme geared towards systemic change secures key partners
In The News
New videogame builds climate awareness among players

Change Game, a videogame financed by EIT Climate-KIC and...

New videogame builds climate awareness among players
In The News
Organic and homemade food brought to the dining rooms of large corporations

Carlota Mateos and Juan Vila, co-founders of PlenEat have...

Organic and homemade food brought to the dining rooms of large corporations
In The News
Climeworks added to Microsoft’s climate portfolio

EIT Climate-KIC supported Climeworks, a carbon capture technology, is...

Climeworks added to Microsoft’s climate portfolio
In The News
Circular Slovenia named in 100 Climate Policy Breakthroughs

The peer-to-peer learning platform for governments, Apolitical, included EIT...

Circular Slovenia named in 100 Climate Policy Breakthroughs
In The News
New tool uses satellite imagery to accelerate sustainable agriculture

Supported by EIT Climate-KIC and developed by its partner...

New tool uses satellite imagery to accelerate sustainable agriculture
In The News
EIT Climate-KIC at the Climate Adaptation Summit 2021

EIT Climate-KIC will be taking part in the Climate...

EIT Climate-KIC at the Climate Adaptation Summit 2021
In The News
Green Invest from Stuttgart and Start Park from Florence win Climathon Awards ...

A total of 140 teams of citizen finalists applied...

Green Invest from Stuttgart and Start Park from Florence win Climathon Awards 2020
In The News
Biden’s Opportunity for Reinventing Climate Innovation

Joe Biden will be sworn in today as 46th...

Biden’s Opportunity for Reinventing Climate Innovation
In The News
EIT Climate-KIC’s Open Accelerator: collaboration, not competition

It is no secret that to tackle climate change...

EIT Climate-KIC’s Open Accelerator: collaboration, not competition
In The News
New platform inspires sustainable Nordic wood construction

This week marks the launch of NoMuWood.com, an EIT...

New platform inspires sustainable Nordic wood construction
In The News
European Union launches Pact to support citizen-led climate action

On Wednesday 16 December, the European Commission is launching...

European Union launches Pact to support citizen-led climate action
In The News
“An avalanche of hope and energy”: The power of Paris

Our Climate Champions 2020: Melissa Capcha. Five years on...

“An avalanche of hope and energy”: The power of Paris
In The News
“Let’s find ways to take action within our abilities”

Our Climate Champions 2020: Gopal Kumar Mohoto. Five years...

“Let’s find ways to take action within our abilities”
In The News
“Climate change is outpacing us, there is no time for excuses”

Our Climate Champions 2020: Cristina Aleixendri Muñoz. Five years...

“Climate change is outpacing us, there is no time for excuses”
In The News
COP26 gives Scotland “a platform to showcase… what’s possible”

Our Climate Champions 2020: Kit England. Five years on...

COP26 gives Scotland “a platform to showcase… what’s possible”
In The News
COP26 might be postponed but “climate action cannot wait”

Our Climate Champions 2020: Melani Furlan. Five years on...

COP26 might be postponed but “climate action cannot wait”
In The News
A climate service for flood risk mapping in urban areas

The SaferPlaces project, supported by EIT Climate-KIC, has created...

A climate service for flood risk mapping in urban areas
In The News
Raising climate awareness through art in the Glasgow City Region

The Glasgow City Region uses arts as a means...

Raising climate awareness through art in the Glasgow City Region
In The News
Helping Europe achieve a circular economy transition

EIT Climate-KIC, EIT RawMaterials, EIT Digital, EIT Food, EIT...

Helping Europe achieve a circular economy transition
In The News
EIT Climate-KIC and EASME host WCEF event on circular economy

The World Circular Economy Forum brings together business leaders,...

EIT Climate-KIC and EASME host WCEF event on circular economy
In The News
Citizens across globe eager to contribute to a post-COVID recovery

Over 4,500 citizens from around the world will join...

Citizens across globe eager to contribute to a post-COVID recovery
In The News
Transformative climate action and COP26: Join our webinar

Are you working to deliver transformative change for a...

Transformative climate action and COP26: Join our webinar
In The News
Madrid, Amsterdam and Milan: Three cities putting citizen participation at the...

The Extinction Rebellion or Fridays for Future global actions...

Madrid, Amsterdam and Milan: Three cities putting citizen participation at the heart of climate action