The Role of Development Finance Institutions in Accelerating the Mobilisation of Green Capital

This report by the Climate Bonds Initiative examines the role of European Development Finance Institutions (DFIs) in mobilising private capital to address the global climate investment gap, which is estimated between USD 2.5 trillion and USD 4 trillion annually.

• There is a significant global climate investment gap, estimated to be between USD 2.5 trillion and USD 4 trillion annually, necessitating the large-scale mobilisation of private capital for sustainable communities, resilient infrastructure, and energy system transitions, especially in emerging markets.
• European DFIs possess substantial financing capacity, with the assets of public development banks in EU Member States estimated at EUR 3.2 trillion in 2020.
• Measuring the efficacy of capital mobilisation is difficult due to a lack of standardised metrics among governments, research institutes, MDBs, and DFIs, as well as inconsistent global reporting on the use of specific mobilisation tools.
• DFIs are well-positioned to provide adaptation investments, which currently represent only 8% of global climate finance, as their mandate is to address financing gaps and market failures where private finance is unavailable or unwilling to enter.
• Developed market DFIs are part of the new collective quantified goal (NCQG) to be adopted at COP29 in Baku, Azerbaijan (11-22 November 2024), which intends to replace the USD 100 billion annual climate finance commitment with a goal in the trillions.

APA

Climate Bonds Initiative (n.d.). The Role of Development Finance Institutions in Accelerating the Mobilisation of Green Capital. https://www.climatebonds.net/files/documents/publications/Accelerating-Green-Capital-Mobilisation-is-Central-to-the-Function-of-Development-Finance-Institutions.pdf

Chicago

Climate Bonds Initiative. The Role of Development Finance Institutions in Accelerating the Mobilisation of Green Capital. n.d. https://www.climatebonds.net/files/documents/publications/Accelerating-Green-Capital-Mobilisation-is-Central-to-the-Function-of-Development-Finance-Institutions.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=The Role of Development Finance Institutions in Accelerating the Mobilisation of Green Capital |url=https://www.climatebonds.net/files/documents/publications/Accelerating-Green-Capital-Mobilisation-is-Central-to-the-Function-of-Development-Finance-Institutions.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiativendrole, author = {{Climate Bonds Initiative}}, title = {{The Role of Development Finance Institutions in Accelerating the Mobilisation of Green Capital}}, institution = {Climate Bonds Initiative}, url = {https://www.climatebonds.net/files/documents/publications/Accelerating-Green-Capital-Mobilisation-is-Central-to-the-Function-of-Development-Finance-Institutions.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }