The “Climate Finance in Action: Regional Perspectives, Practical Solutions” session explored practical financing models and strategies that support climate action and green entrepreneurship. The session brought together perspectives from across the climate finance ecosystem—ranging from blended capital instruments and carbon credits to affordable housing and smallholder farmer finance. Speakers shared real-world experiences in applying different types of capital—including philanthropic, impact, equity, and debt—to address systemic challenges and enable inclusive green growth.
Climate Finance Landscape
Starlene Sharma
, Founding Partner, Green Artha, opened the session by mapping out the climate finance landscape, introducing participants to the range of capital types—philanthropic, equity, venture, impact, and debt. She emphasized that capital should be viewed as a means to an end, not the end itself. The discussion focused on how blended capital instruments can bridge market gaps, de-risk investments, and scale solutions. She outlined three critical traits for effective blended finance:
- A clear and measurable impact focus
- Scalability or replicability of the model
- A pathway to reduce future dependence on concessional funding
Starlene also shared two case studies from Green Artha’s environmental investments:
- Farmers for Forests: Developed a sustainable reforestation model that pays farmers for land use and generates carbon credits.
- Bristol: A carbon-negative chemicals company that scaled through customer acquisition and long-term contracts, supported by Green Artha’s hands-on engagement.
She noted that 9 out of 11 Green Artha investments over the last 2.5 years have secured follow-on funding—demonstrating the effectiveness of their investment approach.
Value Chain Finance for Smallholder Farmers
Edgardo Tongson, Chief of Party for Sustainable Finance, WWF Philippines, presented a value chain finance model that enables small farmers in India to access formal financing through mandatory lending quotas, which require banks to allocate 25% of their lending to agriculture. The model links farmers to corporates who support capacity building and guarantee offtake, thereby reducing perceived risk for financial institutions. Ed also shared how the model has improved crop returns and integrated climate resilience measures, including drought- and flood-tolerant seeds, alternate wet-dry farming techniques, and crop insurance.
Ed described how a guarantee fund helped smallholders build credit histories before connecting with formal lenders. Starlene elaborated on carbon credit markets, explaining how value is influenced by factors like additionality, time horizons, and regulatory context—some credits, she noted, are currently priced as high as $650 per unit.
Affordable Housing & Climate Finance
Sabha Khawaja, Director, Regional Operation TCIS, Habitat for Humanity, shared that they use blended finance, credit guarantees, and technical assistance to de-risk investment in green affordable housing. The MicroBuild Fund, seeded with $10 million, has successfully leveraged $90 million, supporting microfinance institutions (MFIs) through capacity building and green training materials. The center also invests in housing innovation through the Shelter Venture Fund, which backs startups focused on expanding housing supply and quality.
The session closed with reflections on aligning diverse stakeholder expectations—across investors, policymakers, and end users—and the need for adaptive, learning-oriented approaches in emerging sectors. From case studies like Farmers for Forests and carbon-negative chemicals, to models leveraging agri-lending mandates and guarantee funds, the session demonstrated how finance can be used as a tool to unlock value, scale climate solutions, and strengthen enterprise ecosystems.
