To accelerate climate finance in emerging markets and developing economies, the FiCS Lab Incubator focuses on innovative financial instruments from PDBs that demonstrate innovation, actionability, and catalytic potential.

Launched in 2024 as a partnership between Climate Policy Initiative, Finance in Common, and the Inter-American Development Bank, the FiCS Lab Incubator supports the development of innovative financial solutions tailored for PDBs and aimed at overcoming challenges in climate finance.

After conducting a competitive selection process, the Incubator selected three proposals to receive both financial and technical support:

• 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.
• Development Bank of Southern Africa (DBSA) is conducting critical assessments to establish a voluntary carbon market platform, addressing existing barriers to effective market development.
• 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.

For the Incubator’s next cycle, PDBs will be able to apply through a call for proposals open from September 2025 to November 2025.