Navigating the Intersection of Climate and Finance: Nikolai’s Role in Blended Finance at IDB Invest

In my current role as an Investment Officer in Blended Finance at IDB Invest, I work in a small team of eight people managing external donor funds. Our team focuses on investing these donor funds, typically provided at subsidised or below-market rates, together with IDB Invest's own financing and that of other private sector entities.  

During the week, I usually spend about half my time on research and analysis. This involves carefully reviewing investment project proposals from our colleagues in other industry-focused teams to determine the need for concessional blended finance. I dig into the details, assess the financial structures and estimate the viability and scalability of the project proposals. The other half of my time is dedicated to relationship management - liaising with potential clients who are interested in our blended finance resources, as well as with the donor organisations – mostly governments – that provide the concessional funding we deploy. This involves a lot of virtual meetings as well as occasional face-to-face meetings when needed. I really enjoy this more interpersonal aspect of the job as it allows me to build relationships and advocate for the projects we believe in. 

My background is in environmental engineering with a specialization in renewable energy management. I have always been passionate about finding solutions to address climate change and environmental challenges, and initially planned to work in the field of renewable energy and sustainability in Europe. However, my perspective broadened when my girlfriend, who is also an engineer, secured a position at the African Development Bank. This opened my eyes to applying my technical expertise in a development context beyond Europe. The opportunity to work in different regions and cultures became very appealing, leading me to explore roles at organisations like the World Bank and, ultimately, my current position at IDB Invest. This transition has allowed me to combine my technical skills with a more diplomatic and relationship-building approach to driving sustainable development.

One project I've been particularly involved in over the past year is the development of a new climate programme for the Caribbean islands. This region is severely affected by the impacts of climate change, with stronger hurricanes posing a significant threat to the islands' economies and infrastructure. The Caribbean islands have contributed very little to global greenhouse gas emissions, yet they are disproportionately vulnerable to the physical and economic impacts of climate change. As a result, we saw a strong need to help these countries build resilience and adapt to a changing climate. My team worked closely with the Green Climate Fund, one of the largest providers of international climate finance, to develop a comprehensive funding proposal for this Caribbean climate programme.   

We requested $110 million in funding to help Caribbean businesses and communities become more resilient to the impacts of hurricanes and sea level rise. This includes supporting the implementation of better building codes and construction standards and investing in renewable energy and battery storage systems to make the islands' power grids more independent and reliable during extreme weather events. After months of working together, I'm proud to say that the Green Climate Fund Board approved our proposal in July. This was a significant milestone as it will unlock critical climate finance to support the Caribbean's transition to a more sustainable and resilient future.

First and foremost, I value the incredible cultural and international exposure that my role provides. On a daily basis, I interact with colleagues from all over the world, speaking multiple languages and bringing different perspectives to the table. This constant immersion in a global, multicultural environment is truly enriching and has broadened my own understanding of the world in ways I could never have imagined.

On a daily basis, I interact with colleagues from all over the world, speaking multiple languages and bringing different perspectives to the table. 

Secondly, I'm energised by the diversity of disciplines and backgrounds represented within my team and the wider development finance ecosystem. Instead of being surrounded by people with similar technical or academic training, I get to work with lawyers, governance experts, urban planners and professionals from all sorts of fields. This constant exchange of ideas and expertise makes the work incredibly dynamic and stimulating.   

Finally, the opportunity to contribute to tangible, impactful projects that advance sustainable development is very fulfilling. Whether it's supporting climate resilience initiatives in the Caribbean or helping to unlock funding for innovative renewable energy solutions, I'm proud that my work has the potential to create meaningful change and improve lives. Seeing the real-world results of the projects I'm involved with is very rewarding.

One unique aspect of my commute is that I bike to work every day, riding right past the White House on my way to the office. It's a nice way to start and end the day, and I'm able to observe any demonstrations or political activity happening around that iconic landmark. To start the week, we have a team meeting on Mondays, where we come together to align priorities and share updates. This is a great way to kick off the week and ensure we're all on the same page.  

The team has a very strong sense of camaraderie and coherence, which I've found to be quite different from the more task-focused work relationships I experienced in Switzerland.  

The lunch break is a highlight, as we all gather in the bank canteen that serves delicious Latin American cuisine, like Peruvian Ceviche, my favourite Latin American dish. This is a very social and important part of the culture at IDB Invest, where we discuss work as well as broader topics. After work, I often head to the fitness centre located right in our building, which provides another opportunity for informal networking and unwinding. Our team also organises social gatherings, like happy hours, a few times a month to further cultivate our strong team dynamic.

The regional focus at IDB Invest, specifically on Latin America and the Caribbean, contrasts with the truly global scope of the World Bank. This allows for more nuanced, contextual development solutions at IDB Invest. The work culture at IDB Invest places greater emphasis on relationships and social connections, which aligns better with the Latin American cultural context. This is somewhat different from the rather task-focused, corporate atmosphere I experienced at the World Bank. Additionally, the flexible remote work arrangements and respect for work-life balance IDB Invest are more in line with today’s evolving work culture.

The work culture at IDB Invest places greater emphasis on relationships and social connections, which aligns better with the Latin American cultural context.

Prior experience working in an international organisation, even if not directly in development finance, can be a significant advantage. This helps to demonstrate your ability to navigate complex, multicultural environments and institutional dynamics – a crucial skill for success in this field. 

I've found that specialists in various technical fields are highly sought after in development finance, even in roles that may not seem immediately relevant.

What's more, I've found that specialists in various technical fields are highly sought after in development finance, even in roles that may not seem immediately relevant. Engineers, climate change experts, urban planners, and professionals with backgrounds in disciplines such as law or governance can all bring valuable expertise to the table. 

The ability to communicate effectively and build relationships is also crucial. Development finance requires a diplomatic, empathetic approach to stakeholder management, with the ability to get messages to the right people at the right time. Strong interpersonal and intercultural skills are an asset. 

In addition, Swiss professionals with experience from apprenticeship programmes or vocational training can offer unique technical skills and valuable perspectives. The hands-on, practical expertise gained through these pathways is highly applicable to the problem-solving nature of development work. Unfortunately, few of these highly qualified people consider the possibility of working in development abroad. At the moment, I have the impression that only the Swiss foundation, Swisscontact, is actively approaching and recruiting these professionals. 

Finally, I would encourage Swiss professionals to be open-minded and curious about exploring opportunities beyond their home country. While the stability and familiarity of the Swiss context can be appealing, stepping out of this comfort zone and gaining international experience can significantly broaden one's horizons and skill set.