Approach

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

The FS-UNEP Centre takes a unique approach towards combining research and on-ground expertiseto finance the transition towards a greener, climate-resilient future that enables societies to prosper. The FS-UNEP Centres approach to fulfilling its mission is to attract new types of investors, in particular by catalysing the financing of future-proof, low-carbon economic activities by the private sector. Private sector capital has a pivotal role to play in the race against climate change.

The FS-UNEP 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. It aims to bring together demand and supply of sustainable financing by promoting smart finance structures and mechanisms.

Vision & Mission

The team of the Frankfurt School – UNEP Collaborating Centre for Climate & Sustainable Energy Finance envisions a sustainable and peaceful world with resilient and thriving low-carbon and resource-efficient societies; a world which was made possible by a smart, innovative, courageous and responsibly-acting financial industry.

The Centre’s mission is to inform, empower, encourage and mobilise the financial industry towards making this vision a reality. The primary objective hereby is to catalyse significantly increased levels of sustainable energy and climate finance, bridging the public-private sector gap and thereby contributing to the development of a global sustainable economy.

Expertise

The team of Frankfurt School – UNEP Collaborating Centre for Climate & Sustainable Energy Finance 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 bridge-builder between the public and private sectors, developing and developed countries, high-level climate policy negotiators and on-the-ground project developers. It generates mutual benefit by 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 and allows for developing countries to apply leading global solutions.

Together with partners in different well-respected institutions, the Centre is elaborating and field-testing new financial instruments, products and services that serve the growing markets for energy efficient and clean energy production.

By implementing and recording findings and instruments in the field where they are most effective, the Centre maximises its knowledge base to strengthen its role as a leading think-and-do tank.

THE FS-UNEP CENTRE IS A STRATEGIC PARTNERSHIP

Frankfurt School of Finance & Management

Frankfurt School of Finance & Management gGmbH (Frankfurt School) is a leading private business school based in Frankfurt am Main. In education, research and advisory Frankfurt School covers economics, management, finance and banking. With 50 members, its faculty is one of the leading economics faculties in Germany. Frankfurt School is part of a global network of about 100 partner universities and business schools. It hosts offices in Nairobi, Istanbul, Sao Paolo, Beijing and Pune. The faculty offers professional and executive education as well as university degree programmes and has full degree awarding power. The Centre is a sister department of Frankfurt School’s International Advisory Services (IAS) department. IAS experts manage consulting and training projects on finance in emerging and developing countries, disseminating sustainable international business practices through education, research, training and advisory services. IAS’ man date is to build up and strengthen institutional capacities in the financial sectors of these countries.

Federal Ministry for the Environment, Nature Conservation and Nuclear Safety

The Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) is a key partner for the Centre. The Ministry’s principal functions include climate policy issues, international cooperation in environmental policy, and informing and educating the public about environmental aspects. It acknowledges that climate change is a great global challenge which has to be overcome. Climate protection and energy, and the related national and international level policy frameworks, have become key topics in the Ministry’s work . Germany is a driving force behind the international climate negotiation process. It is leading the way with ambitious emission reduction targets at the national level: it will reduce its emissions by 40% by 2020 as compared with 1990, irrespective of the efforts undertaken by oth er countries. This makes sense for economic as well as climate policy reasons. Further, Germany tries to set high standards within this international negotiation process regarding mitigation targets and providing reliable and transparent climate finance. Since the beginning of 2008, BMU has made around €1.1 billion available (inter alia from the sale of emissions allowances) to finance a new initiative. The International Climate Initiative (ICI) consists of more than 350 international projects in the fields of mitigation, adaptation, REDD+ and biodiversity. The goal regarding mitigation to tap the high existing potential for reducing emissions in a cost effective way and on a large scale and further to assist partner countries in switching to a sustainable, low carbon economy.