Frankfurt School UNEP

Frankfurt School – UNEP Collaborating Centre for Climate & Sustainable Energy Finance (the Centre) is a strategic cooperation between the United Nations Environment Programme (UNEP) and the Frankfurt School of Finance & Management (Frankfurt School).

Both partners recognise that – for decades to come – climate change will pose a fundamental challenge to the world economy and the financial industry in particular.

The vision of the Frankfurt School – UNEP Collaborating Centre for Climate & Sustainable Energy Finance (the Centre) is to advance transformation to resilient low-carbon and resource-efficient economies by attracting new types of investors, in particular catalysing the financing of clean energy by the private sector, which has a pivotal role to play. The Centre’s work is designed to encourage and assist the finance community to scale-up current investment, or to take the first steps into new markets. A key part of this process is to enable the public sector to put in place policies, regulations and initiatives that overcome existing or perceived investment risks and other barriers seen by the private sector due to unfamiliarity with clean energy initiatives, particularly in developing countries. It aims to bring together demand and supply of climate financing by promoting smart financing structures and mechanisms. Understanding what drives investors and financiers, and the barriers they face, is crucial to improving public-private interaction in climate finance. The Centre combines in-depth knowledge of financing markets, particularly in developing countries, with extensive skills for the design of appropriate financial mechanisms and contractual arrangements for financiers under local conditions. It acts as a moderator between the public and private sectors, developing and developed countries, high-level climate policy negotiators and on-the-ground project developers, thereby bringing together the demand for financing with those able to supply it.

As a unique “think-and-do” tank combining research, education and project implementation, the Centre is in a position to combine academic know-how with practical project experience. This maximises lessons learnt, allowing developing countries to leapfrog from their current status to leading global solutions.

In applying a continuum from research to project implementation, the Centre builds a knowledge base that directly benefits its partners and the wider community. By combining advisory work with applied research and capacity building, we identify and multiply good practice in climate and sustainable energy finance.