02. Matching a project to the right source of finance

Lecture quiz

Quiz - Matching a project to the right source of finance

Developing Bankable Climate Finance Proposals. Unlimited attempts, no timer, and one pass mark for the whole platform - applied the same way to the 2 written questions below the multiple choice.

4 questionsPass mark 70%No results recorded+ 2 written questions

Questions

4

70% to pass

Attempts

-

no figures in this prototype

Pass rate

-

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Average score

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Questions

The correct answer and its explanation are shown together here so you can check them at a glance - neither is ever shown to a learner attempting the quiz, right or wrong.

  1. 1. What does a strong climate rationale have to do?

    • Cite as many co-benefits as possible
    • Connect the intervention to a climate outcome by steps someone can checkCorrect
    • Avoid mentioning cost
    • Focus only on emissions reduced

    A rationale that asserts a benefit without a checkable chain of steps does not survive review; each link has to be something a reader can follow and dispute.

  2. 2. In project finance terms, where should risk generally sit?

    • With the party that has the deepest balance sheet
    • With the party best able to manage itCorrect
    • Always with the public sector
    • Wherever the funder prefers

    Demand risk placed on a contractor who cannot influence demand is priced heavily or refused; retained by the party that can manage it, it often costs far less.

  3. 3. Why include a downside case in a financial model?

    • It is a mandatory annex in every template
    • Appraisers will find it anyway, and naming it builds credibilityCorrect
    • It lowers the interest rate offered
    • It transfers liability to the funder

    Stating the point at which a project stops being viable is a signal of a model worth trusting on everything else.

  4. 4. What makes a project 'bankable' rather than simply worthwhile?

    • It has government backing
    • It produces a measurable return or saving a funder can point toCorrect
    • It is technically innovative
    • It has no environmental impact

    A project can be entirely worth doing and still not be bankable if nothing about it produces a measurable return a funder can point to.

Written questions

Optional - a lecture is complete without any. Add two-to-three sentence explanation questions where the multiple-choice quiz cannot tell whether an idea actually landed - as soon as one exists, a learner must pass it at 70%, the same platform-wide mark as the quiz, before the next lecture opens.

  1. 1. In two or three sentences: why does every source of climate finance need to be read for the objective it is accountable for?

    objectiveaccountablelead withfund

    2 of 4 have to appear to pass.

    Model answer: A climate fund is not a bank and is accountable for its own objective - emissions avoided, adaptation benefit, private capital mobilised. Reading that objective tells you which parts of a project to lead with.

  2. 2. In two or three sentences: why is matching a project's finance type to its cash flow decided before the proposal is drafted, not during review?

    grantcommercialcash flowwastes

    2 of 4 have to appear to pass.

    Model answer: A grant-appropriate project pitched to a commercial lender reads as unbankable, and a revenue-generating project pitched only for grant funding wastes its strongest asset. Matching finance type to cash flow is decided before the proposal is drafted.