The objective of this note is to identify/assess the barriers preventing local financial institutions from utilizing carbon finance to support their financing activities, and to summarize existing attempts in using carbon revenues to enhance the bankability of these projects by reducing risks. The note is a deliverable under the Carbon Initiative for Development’s (CiDev’s) Methodology Work Program for FY15 supporting the Ci Dev achieve its objective of utilizing the Clean Development Mechanism (CDM) to spur the implementation of projects in low income countries, to the extent possible, with a focus on household energy access on Africa.