World Bank research confirms that when countries develop “bankable” renewable energy programmes, investment follows1. The issue isn’t a lack of funding for climate action, it’s the shortage of projects which are financially viable for the private sector2.
What is a bankable project?
A bankable project is a project that is attractive to investors because it has a clear cost recovery strategy. Simply put, it offers financial returns for private sector investors while also delivering social and economic benefits to citizens.
Why are bankable projects essential for working with the private sector?
Bankable projects align public and private interests by reducing financial uncertainty and making investment in climate adaptation and infrastructure more appealing.
What skills do public servants need to develop bankable projects?
- Sustainable finance application – Using climate finance knowledge to design projects that attract private capital.
- Policy tool implementation – Identifying and applying the right mechanisms to drive investment.
- Stakeholder engagement – Effectively communicating with investors, communities, and regulators.
- Technical expertise – Applying project design, cost-benefit analysis, and financial modelling.
- Investment structuring – Understanding funding sources and designing viable investment opportunities.
- Commercial acumen – Identifying and aligning climate projects with private sector business interests.
What is a “pipeline” of bankable projects?
A pipeline of bankable projects is a menu of investment-ready opportunities government leaders can prepare. These projects solve urgent energy and climate challenges in their country while offering financial returns. A pipeline ensures a steady flow of projects that are attractive to private sector funding.
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