Financial Instruments Toolkit
Matching funding mechanisms to project needs
Your Progress
Section 2 of 5The Financing Menu
No single instrument finances all adaptation needs. Smart project developers assemble portfolios—combining grants for capacity building, concessional loans for infrastructure, insurance for risk transfer, and private equity for revenue-generating components.
Financial Instrument Matching Tool
Select a project type and build a financing strategy
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Coastal Protection Infrastructure
Budget: $50M
Key Challenge: Long-term investment with unclear cash flow
Available Financial Instruments
Understanding the Instrument Landscape
| Instrument | Type | Typical Size | Best For | Key Advantage |
|---|---|---|---|---|
| Green Bonds | Debt | $100M+ | Large infrastructure | Capital market access |
| Resilience Bonds | Debt + Insurance | $50M+ | Disaster risk reduction | Investor protection |
| Blended Finance | Mixed | $10M+ | High-risk markets | De-risks private capital |
| Development Banks | Concessional | $5M+ | Public sector | Low rates, long tenor |
| Climate Funds | Grants | $2M+ | Vulnerable communities | No repayment needed |
Matching Principle
Use the right instrument for the right component. Public goods (early warning systems, mangrove protection) need grants or concessional finance. Revenue-generating components (water utilities, resilient agriculture) can attract commercial capital with appropriate risk mitigation.