PEEB Climate Finance Incubator
Unlocking climate financing for buildings through innovative solutions
CONTEXT
Buildings are responsible for over a third of greenhouse gas emissions from energy. Still, only a fraction of climate finance flows towards buildings . There is a huge potential for smart incentives to boost climate action and mobilise private investments in green and resilient buildings infrastructure. Without this, climate action on buildings cannot reach the needed scale, and weighs heavily on public budgets.
One key barrier to using climate finance for buildings is the lack of reliable data on emissions from the sector. Without reliable emissions assessments, it is impossible to know the expected potential for greenhouse gas savings which is the basis for climate finance. Another critical barrier is the lack of information about robust methodologies. This is often the case among stakeholders working on market mechanisms for emissions reductions, such as market mechanisms under Article 6 of the Paris Agreement. There is a lack of well-structured financial incentive mechanisms that use blended finance in many countries – private capital is not being leveraged effectively.
PEEB Climate Finance Incubator improves the financial, strategic, and regulatory framework for climate mitigation in the buildings sector. Clear guidance and technical capacity are needed for decision-makers and the private sector to engage in cooperative approaches that could help boost investment in sustainable buildings. Equally important are incentive programmes designed to mobilise private investment.
PARTNER COUNTRIES
Indonesia, Morocco, and Nigeria are the countries implementing activities in collaboration with PEEB Climate Finance Incubator.
OUR WORK
PEEB CFI lays the foundation for climate finance through support for a clear data baseline on greenhouse gas emissions from buildings, pioneering work on Article 6 mechanisms for buildings, and innovative incentive mechanisms that mobilise private investments.
Driving climate mitigation through baseline studies and financial incentive mechanisms
PEEB CFI helps develop action-oriented baseline studies outlining the status quo and scenarios for greenhouse gas emissions in the buildings sector. PEEB CFI uses these baseline studies to support partner countries in the development of national or sub-national funding programmes for climate mitigation in the sector.
Experts first conduct a market analysis and assess potential business models, working closely with key institutions and stakeholders. Based on this analysis, different incentive mechanisms and financing options are explored. This includes advising banks on business models to scale up energy efficiency investments, assessing national frameworks for financial incentive programmes, and supporting applications for climate financing. The access of women and marginalised groups to financing is taken into account. The findings are used to advise national policymakers on the implementation of innovative financial incentive systems.
Unlocking climate finance with Article 6 market solutions
PEEB CFI supports partner countries in assessing the suitability of climate mitigation projects in the buildings sector and exploring the use of new market mechanisms under Article 6 of the Paris Agreement. This involves analysing the national framework to identify appropriate approaches and strengthen stakeholder capacities through methodological training. Here, PEEB collaborates with Morocco, a pioneer on Article 6 activities. Insights from this work will be shared with a broader range of countries to promote good practices and, where relevant, integrated into training activities. This initiative aligns with ongoing international discussions and negotiations, ensuring coordination with related projects to mitigate risks such as double counting and insufficient ambition levels.
FINANCING
PEEB CFI is supported by the Federal Ministry for Economic Affairs and Climate Action of Germany (BMWK).
Activities
A model hospital for health and climate
A model hospital for health and climate
📍 Saint Joseph, Palestinian Territories
🛠️ Investment Grant
In the Palestinian Territories, PEEB is supporting the renovation of St. Joseph Hospital. Hospitals are intensive energy consumers due to their high activity levels, large staff, patient and visitor numbers, and the energy demands of specialized equipment. PEEB Med is supporting this project with a €1 million grant to ensure energy-efficient upgrades aligned with climate resilience goals.
The hospital’s energy consumption is expected to drop by 57%—equivalent to the annual consumption of roughly 405 Palestinian households!
Sustainable tourism and hospitality centers
Sustainable tourism and hospitality centers
📍 Tunisia
🛠️ Technical assistance
In Tunisia, PEEB supports the renovation of four tourism and hospitality training centers in Sousse Nord, Monastir, Tozeur, and Ain Draham.
PEEB Med supports the renovation of these schools by providing a technical assistance that will focus on energy efficiency. More specifically, it has conducted an energy audit and has provided recommendations for energy-efficient equipment and renovations, proposals for autonomous energy production systems, and best practices to optimize equipment use, particularly in the cold chain.