Welcome to the FiCS Lab
The applications for the FiCS Lab Incubator are now closed!
The applications for the FiCS Lab Incubator are now closed!
The FiCS Lab was seeking proposals for financial mechanisms tailored for public development banks!
This was a fantastic opportunity to accelerate climate finance in emerging markets and developing economies by focusing on mechanisms that demonstrate innovation, actionability, and catalytic potential.
Launched in May 2024 through a partnership between Climate Policy Initiative, FiCS, and the Inter-American Development Bank, the incubator supports PDB-led financial instruments aimed at overcoming challenges in climate finance. In this first cycle, three standout proposals have been selected to receive both financial backing and technical assistance to pilot their innovative solutions.
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Uganda Development Bank is tackling currency risk challenges by developing a novel risk distribution instrument involving a development-oriented hedge provider and an innovative tail-end guarantee.
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Development Bank of Southern Africa (DBSA) is conducting critical assessments to establish a voluntary carbon market platform, addressing existing barriers to effective market development.
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Development Bank of Minas Gerais (BDMG), Brazil is creating a Credit and Production Guarantee Fund to assist local farmers in transitioning to regenerative agriculture practices.
A second cycle, expanding possibly to new topics, will run through 2025/2026. A second call for proposal is expected during Fall 2025
WHAT IS THE FICS LAB?
WHAT IS THE FICS LAB?
The mission of the FiCS Lab is to be a platform that fosters innovation and collaboration among PDBs in mobilizing private capital and expanding climate finance, particularly in emerging markets and developing economies.
To achieve this, the FiCS Lab will work on three pillars:
- Pillar 1: Sharing and advancing knowledge and best practices on financial innovation gaps, initiatives, and implementation. This will be achieved by producing issues briefs, blogs, and disseminating knowledge products.
- Pillar 2: Facilitating structured dialogues to standardize or harmonize approaches by creating m workstreams, workplans and any relevant governance arrangements.
- Pillar 3: Supporting incubation of specific financial innovations in institutions that are ready to act but need technical and/or financial support.
working group
working group
The FiCS Lab plans to establish four working groups to drive Pillar 1, sharing and advancing knowledge and best practices, and Pillar 2, facilitating structured policy dialogues. Each group will address one of the four thematic areas identified in the FiCS communique:
- Climate resilient debt clauses
- Debt for nature/climate swaps
- Domestic carbon markets
- Currency risks
