- Climate adaptation loans : Financial institutions can design credit products that support projects improving resilience to climate impacts, such as coastal defenses, climate-resilient agriculture, and early warning systems.
- Green bond issuance for climate action : Banks can issue or underwrite green bonds exclusively targeting climate mitigation or adaptation efforts, including renewable energy, low-emission transport, and reforestation.
- Financing for carbon emission reduction projects : Banks can fund verified carbon-reduction initiatives like methane capture, industrial energy efficiency, or clean cookstove programs in both urban and rural areas.
- Support for climate technology startups : Venture financing or concessional lending can be directed toward startups working on climate solutions such as carbon capture, climate modeling tools, or sustainable cooling systems.
- Incentive-based climate lending : Financial institutions can offer preferential rates or repayment terms for businesses and individuals meeting climate impact targets, such as reduced emissions or verified use of climate-friendly practices.
- Climate risk insurance products : Developing and financing insurance schemes that protect against climate-induced disasters (floods, droughts, storms) helps build financial resilience for vulnerable populations and businesses.
- Green mortgages and property finance : Mortgage products can be tied to energy-efficient or low-emission housing, encouraging sustainable construction and retrofitting in line with climate objectives.
- Carbon market facilitation : Financial institutions can create platforms or services to support the trading, verification, and financing of carbon credits, enabling private sector participation in global climate efforts.
- Internal climate stress testing and portfolio alignment : Banks can assess their exposure to climate risks and shift capital toward climate-aligned assets, helping drive systemic alignment with national and global climate targets.
- Capacity-building finance : Financial institutions can fund training, awareness, and technical support programs to help clients, especially in the SME sector, understand and implement climate action strategies.
