Our Approach: Transactions to Transitions
By working to design and scale real-world solutions, we help unlock investment into sectors and geographies where it matters most, channelling global capital into local solutions. We focus relentlessly on execution—testing ideas, breaking down barriers, developing the institutions, and co-designing the solutions that enable capital to flow where it can deliver the greatest impact in the real economy.
The IPCC calls for a 43% reduction in global emissions by 2030 from a 2019 baseline to deliver a Paris Agreement-aligned future. The IIGCC’s investment roadmap calls for $126tn in climate investment to deliver it. The science is definitive and there are ambitious targets to match – the GFI and its partners are working to convert that ambition into real economy investment.
Transactions to Transitions: A Global Investment Greenprint
Establish a national goal
Set a clear national goal. This gives investors and developers the certainty they need to commit resources. Goals must reflect fiscal realities and consumer capacity, so funding and financing remain sustainable. Broad support reduces the risk of sudden policy shifts. Sector goals should complement wider national objectives — for example, an energy grid plan in energy markets or a restoration framework in nature markets.
Policy and regulation
Strong legal frameworks and support for private ownership reduce risk as does the embedding of decarbonisation goals in legislation. Predictable taxes, capital movement, and macroeconomic stability give confidence, especially to foreign investors. Clear planning and land-use rules help developers secure land and start projects quickly. These conditions lower risk and unlock private capital.
Incentives to create demand + supply
Investors need confidence that demand exists, and revenues are secure. Utility-scale projects rely on contracts like Power Purchase Agreements, while household-level demand may need pricing support. Too much supply before demand matures risks stalled pipelines and government intervention. In newer sectors, such as green hydrogen, subsidies and off-taker agreements are essential to create demand and close the cost gap with conventional products.
Sector and market infrastructure
Predictable, timely procurement keeps bids realistic and projects on track. Delays push developers and investment teams to other markets. Repeatable processes encourage investment in supply chains, manufacturing, and jobs. Standard contracts, such as Power Purchase Agreements, reduce negotiation time. Consistency also builds an ecosystem of advisers, financiers, and legal experts, as repeat business justifies ongoing commitment of resources.
Building institutions
Build capacity within key institutions. Strong institutions are essential where enabling environments are less mature. Bringing public and private sectors together can help identify and remove barriers to project delivery. In some cases, the priority may be creating an independent procurement agency to run repeat auctions. This shift can move a market from isolated projects to a sustainable, long-term programme.
Project pipeline
Develop the project pipeline. With national goals, stable policies, and reliable procurement, private developers and investors will engage. As confidence builds through repeat bidding and delivery, projects can scale into full programmes. In early-stage markets, grants and development finance can play a key role by funding feasibility studies and due diligence. Referencing national plans helps reassure investors that opportunities are real and worth pursuing.
Product innovation
Develop new products, funds and market interventions that directly address de-risking requirements, allow for risk-sharing, credit-enhancement, demand-side certainty and capital protection. These products can be designed with providers of public, development or private capital depending on sector specific requirements and geographic nuance.
Public capital / FOAK Pilots
Deliver financial products with public or first-of-a-kind (FOAK) capital. In markets with limited lending capacity, DFI support can unlock early projects and stimulate local finance. Currency risk may also need coverage until markets mature. Programmatic risk-mitigation facilities can speed projects to financial close. For example, South Africa’s Green Finance Facility uses limited public capital to guarantee deals, making municipal renewable energy and infrastructure projects bankable for private investors.
Blended Finance
Introduce private capital into capital stack. As project pipelines expand and payment and regulatory histories become clearer, private investors gain confidence in assessing risk. Reliance on concessional finance can be reduced or removed. Greater familiarity and trust in the market allows private capital to flow faster and at larger scale, accelerating overall investment and programme growth.
Scale products into asset classes
Scale financial products into local markets. As programmes grow, new financial products develop. In countries with stronger financial systems, local pension funds and other investors can become long-term owners of operating projects. Building these domestic investment channels makes financing more sustainable and helps projects grow faster.
Turn domestic into global asset classes
Scale domestic asset classes into global markets. As markets mature, projects and companies can attract international investors alongside local capital. Strong track records and larger portfolios make it easier for investors to access the asset class. This also allows greater diversification across locations, project types, and jurisdictions, increasing confidence and supporting further investment growth.
- Policy
- Market infrastructure
- Product development
- Replicate and scale
Our ‘Transactions to Transitions’ approach is a scalable Global Investment Greenprint which creates investment plans that connect country demand with investment supply, by aligning policy, development capital and pipeline development. This approach not only works to create deals, it helps create institutional approaches that can enable these deals to be replicated and scale across priority sectors and geographies.
We need this new approach to bring the system together – one that enables governments to work more effectively with business and finance to unlock real economy investments that deliver the public value citizens need.
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Green Finance Institute Hive
GFI Hive’s mission is to increase private investment in nature restoration, nature-based solutions
and nature-positive outcomes.
“The systemic risk posed by the climate crisis to financial services requires decisive action and a rapid pivot towards the opportunities presented by the zero-carbon economy. Box-ticking, sloganeering, greenwashing and relying on the heroic efforts of individuals won’t achieve the scale of the transformation required. Cross-sector collaboration and the focused application of the creativity, innovation and skills of the financial services industry to finance the global transition will.”
Dr Rhian-Mari Thomas OBE
Chief Executive, Green Finance Institute