• Ongoing Projects
• Feasibility Study: “Climate Protection Agreements as a New Source of Funding for Green Startups”

Study of the potential and feasibility of Climate Forward Financing (CFF) for pre-financing future greenhouse gas (GHG) emission reductions and CO2 removals by green startups.

Many green startups – young companies whose business models make a positive contribution to environmental and climate protection – have significant potential to reduce greenhouse gas (GHG) emissions. At the same time, they often face significant financing barriers, as their technologies require substantial investment and present specific market challenges.

Traditional funding instruments often fall short in this regard, as they are not tailored to the specific needs of young, growth-oriented companies.

New promising financing approaches

New financing approaches such as Climate Forward Financing (CFF), which pre-finances future emissions reductions or climate protection measures, offer a promising alternative here. Initial approaches of this kind are already being implemented in practice, but have not yet been tailored to the needs of startups.

The project addresses this gap and examines whether and how Climate Forward Financing models can serve as viable financing instruments for startups in Germany. To this end, existing approaches are systematically analyzed, obstacles are identified, and practical implementation proposals are developed.

Can Climate Forward Financing be designed to be suitable for startups?

The key question here is whether Climate Forward Financing models can be designed in a way that is specifically tailored to startups and is both valid and feasible – that is, whether they are practical, effective, and legally sound. The goal of the project is to establish a solid foundation for determining whether and in what form CFF mechanisms can serve as a source of financing for startups.

Funding and Implementation Partners

In addition, potential implementing entities will be identified and actively involved. If the concept proves viable, a further goal following the feasibility study is to tap into 50 percent of the identified pre-financing potential – estimated at €6 billion – in Germany through Climate Forward Financing mechanisms within the next five to seven years.

In this way, this project contributes to closing the financing gap and to the long-term establishment of impact-based financing structures for startups in Germany.

The project is being carried out by the Borderstep Institute with funding from the Deutsche Bundesstiftung Umwelt (DBU).