Interview of the month: Barbara Buchner from Climate Policy Initiative
Dr. Barbara Buchner is Global Managing Director of Climate Policy Initiative where she advises leaders on climate mitigation and adaptation investments around the world. She also directs the Global Innovation Lab for Climate Finance, which solicits, shapes, and tests cutting edge climate finance instruments on energy, adaptation and land use.
Barbara recently passed through Geneva for the Giving Women Conference on Women at the Frontlines of Climate Action, and we took the opportunity to sit down with her and learn more about her work.
Can you tell us about Climate Policy Initiative – what do you aim to achieve and why you focus on finance as a key lever in tackling climate change?
At Climate Policy Initiative (CPI), our mission is to help governments, businesses, and financial institutions drive economic growth while addressing climate change. Finance is at the heart of this mission because the scale of the challenge demands unprecedented investment—trillions of dollars must be mobilized and deployed effectively to transition to a just, low-carbon, resilient future.
We focus on finance as a key lever because it connects the dots between policy, markets, and innovation. Climate solutions exist, but they need the right capital flows to reach scale. Our research on tracking global climate finance flows provides the data and insights that stakeholders need to make informed decisions, while our on-the-ground programs help design and implement innovative financial instruments. This ensures that funding not only reaches where it’s most needed but does so in a way that maximizes impact. A key element of our success is helping to bridge between siloes and convening leaders from across the public and private sectors.
Tracking climate finance has become essential in the fight against climate change. As the lead author of the Global Landscape of Climate Finance, what major trends or shifts have you observed in recent years? How do you think the climate finance landscape will evolve in the next decade, especially regarding support for developing economies?
The Global Landscape of Climate Finance shows both progress and persistent gaps. Annual flows have reached an all-time high of $1.3 trillion, which is promising, but it’s still drastically lower than the estimated $6.7-10 trillion required annually until 2050 to avoid the most catastrophic effects of climate change. The gap is particularly stark in areas like adaptation and support for developing economies.
We’re also seeing the private sector take on a larger role, now contributing 54% of total finance flows. Investments in renewable energy and sustainable transport dominate because they are more mature sectors. However, the challenge remains that critical areas like adaptation—building resilience to climate impacts—receive less than 10% of total finance. This imbalance is a significant concern, particularly for vulnerable developing economies that urgently need these funds to protect their communities and ecosystems.
Another trend is the geographic disparity. The majority of climate finance is concentrated in high- and middle-income countries, while low-income nations—those most vulnerable to climate change—receive a fraction of what they need. This underscores the need for better mechanisms to ensure finance flows equitably and reaches those on the frontlines of the climate crisis.
Looking ahead, I believe there are three key areas where the landscape will evolve:
- Scaling transformative financing models: Blended finance, for example, will become increasingly important. It uses public or philanthropic capital to de-risk investments and attract private funding, particularly for projects in developing economies. This approach is already making an impact, but we need more models that can scale dramatically.
- Addressing the adaptation gap: I expect to see a stronger push for adaptation financing. The challenge is operationalizing these tools to ensure they deliver real support where it’s needed most.
- Building capacity and enabling environments: Particularly for developing economies, attracting private investment isn’t just about money—it’s about creating the right conditions. This includes policy frameworks, technical support, and even partnerships to build local expertise.
Ultimately, the next decade will need to be about balance and scale. We’ve made strides in mobilizing private capital for mitigation, but now we need to focus on ensuring that finance flows equitably, supports adaptation, and empowers developing economies to lead in the global climate transition. It’s an opportunity to create a more inclusive and resilient financial system—and that’s a challenge we must meet head-on.
You were recently in Geneva speaking about the intersection of gender and climate. Recognizing that many women-led climate initiatives struggle to obtain the resources they need and that many classical financial solutions are not gender-sensitive, how can we scale and replicate climate finance solutions that support and include women at all levels? Do you have any examples of successful models?
The intersection of gender and climate is critical, especially in sectors like energy, where women are both disproportionately affected and significantly underrepresented in decision-making. Women often lead or depend on community-based initiatives in renewable energy and energy access, yet systemic barriers in finance and capacity prevent these initiatives from reaching their full potential. CPI’s climate finance tracking work shows that gender-smart investments in agriculture and clean energy boost climate resilience, particularly in developing economies. Women can serve as “benefit multipliers,” fostering sustainable practices when they receive adequate support. But despite increasing awareness and the huge potential, only a small fraction of climate finance currently prioritizes gender equality, underscoring the need for targeted funding and investment opportunities. Gender-focused climate finance remains significantly underfunded, with only 0.04% of climate aid prioritizing gender equality.
The CC Facility report Blended Finance and the Gender-Energy Nexus highlights the critical role that blended finance can play in addressing this gap. Blended finance combines concessional public or philanthropic capital with private investment to de-risk projects and attract funding at scale. When applied with a gender lens, it can directly support women-led initiatives, promote women’s participation in the energy sector, and ensure gender-responsive energy solutions.
One example is the Women Entrepreneurs Financing Initiative (We-Fi), which uses blended finance to provide grants and loans to women-led businesses in sectors like clean energy. Another is the Energy Access Relief Fund, which prioritizes gender-sensitive approaches by including metrics for women’s participation in project implementation and employment.
To scale these solutions, we need to:
- Incorporate gender-specific targets in climate finance instruments, ensuring that women’s participation and benefits are explicitly tracked.
- Strengthen technical and business capacity for women entrepreneurs, helping them to access larger markets and more significant capital.
- Encourage policy reforms that promote gender equity in energy access, such as mandating quotas for women’s leadership in energy projects or incentivizing women-focused innovations.
Scaling gender-sensitive climate finance is not just about equity—it’s a smart investment. Integrating gender in energy projects often leads to better economic and environmental outcomes, creating a multiplier effect for communities. By addressing both the supply and demand sides of finance, we can replicate these successes and empower women to lead the global energy transition.
As a member of several influential global groups, such as the G20 Task Force on a Global Mobilization against Climate Change and the UNFCCC’s Expert Group for Race to Zero and Race to Resilience, you are involved in high-level discussions on sustainable finance. What key policy changes or innovations do you think are urgently needed at the international level to effectively scale climate finance and meet global climate goals?
To effectively scale the quantity and quality of climate finance, we urgently need transformative international action. First, we need a fit-for-purpose global climate financial architecture, with multilateral development banks using their concessional finance more effectively and leveraging their resources and collaboration with public development banks to attract private sector investment. Second, both established and innovative approaches, including blended finance mechanisms and de-risking tools, need to support climate, nature, and development goals and target emerging markets to mobilize private capital at scale. Third, strengthening domestic markets and institutions are integral to create the enabling environments and capacity that can unlock significant funding, fostering country ownership and country-led action. Finally, robust accountability systems must ensure transparency and alignment of climate finance with tangible outcomes. These reforms are critical to meeting global climate goals.
