Cities and regions need project preparation financing. Similarly, private sector requires support to assemble investments to tackle climate change. In this context, feasibility studies are key, considering how climate policies and regulation are shifting business models, and the participation of the private sector. In our firm we have advised public and private investors in developing their low-carbon climate resilient project pipelines, improving their readiness and bankability.
EIB Case Study
We prepared a capacity building project to support the Fonplata Development Bank in South America in scaling up their climate risk and vulnerability assessments in their origination and credit operations, supported by the European Investment Bank. This project assured that the lending provided by the EIB to Fonplata was compliant with the highest international standards and the state-of-the-art, embedding climate risk into processes and people’s mindsets.
We follow the TCFD guidance with regards to physical and transition risks. These are disaggregated in the building blocks that comprise the operation, and ultimately impacting business bottom line. A thorough analysis is made to assess how climate risk can affect businesses, looking to minimize operational disruptions that hinders investment performance. Vulnerability identification, exposure, measures, prioritization, proxies, and practical approaches are just the common elements to reduce the value at risk of any investment.