Worldwide—Climate Finance Accelerator 2 (CFA 2)

Emerging market and developing economies are estimated to need US$1 trillion per year to achieve climate and nature goals. But in connecting private sector finance with low-carbon, climate-resilient projects, these countries face various barriers, including unfavorable policy and regulatory environments, poor awareness of low-carbon investment opportunities, and thin pipelines of bankable climate projects.

A key part of the British Government’s efforts to support climate action at scale, the Climate Finance Accelerator 2 (CFA 2) is the second phase of a technical assistance program that brings together project proponents, investors, and policy makers to increase flows of climate finance. It is funded by the U.K. Department for Energy Security and Net Zero and contracted by PricewaterhouseCoopers, to which DAI serves as a subcontractor.

CFA 2 extends and expands on the initial phase of the CFA initiative, which has increased the flow of predominantly private sector finance to support low-carbon, climate-resilient projects that support sustainable development and climate mitigation efforts in 10 partner countries: Colombia, Egypt, Mexico, Nigeria, Pakistan, Peru, South Africa, Türkiye, Uganda, and Vietnam. By the end of 2025, the CFA had closed at least 28 deals worth US$336 million.

Building on the success of CFA 1—where DAI was also a significant subcontractor, serving as the delivery partner in Pakistan—CFA 2 will focus on Colombia, Mexico, Pakistan, South Africa, Vietnam, Kenya, India, Malaysia, Indonesia and the Philippines, with the prospect to broaden engagement further. CFA 2 is designed to offer more flexibility in terms of the number, size, and focus of project cohorts, and a stronger emphasis on building and maintaining active partnerships with investors, financial institutions, climate funds, private equity funds, and policy initiatives.

In CFA’s second phase, DAI will continue its delivery work in Pakistan, developing a high-volume pipeline of bankable low-carbon projects and engaging with investors to increase their appetite for such projects. This work includes selecting suitable projects, providing specialized technical assistance and business strategy consulting, advising on impact and social inclusion issues, and ultimately equipping project developers to prepare compelling investor roadshows capable of attracting national and international capital.

In the course of CFA 2, DAI will extend its portfolio management responsibilities beyond Pakistan to encompass other CFA countries, beginning with other countries in Asia.