Leveraged co-financing from public and private sources has emerged as a policy priority among international environment and development agencies. The Financial Innovation Lab is a place to exchange ideas about financing techniques for climate change mitigation and adaptation investments.

The main objective of the Financial Innovation Lab is to create investment vehicles and financial structures that maximize private sector leverage and optimize the use of donor’s funds. The key premise is that public money should not be used for direct investing, but for de-risking. That is, donor’s resources should be carefully applied to absorb certain risks that constrain private sector involvement in green financing.