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

The report examines the role of European Development Finance Institutions (DFIs) in bridging the global climate investment gap, which is estimated between USD 2.5 trillion and USD 4 trillion annually. It highlights the significant financing power of EU Member State public development banks, whose assets were estimated at EUR 3.2 trillion in 2020, and emphasizes the need for large-scale private capital mobilisation, particularly in emerging markets. The document notes a lack of standardized metrics and data regarding the efficacy of mobilisation tools, which hinders comparison across DFIs. It also positions the role of developed market DFIs within the context of the new collective quantified goal (NCQG) to be adopted at COP29 in Baku, Azerbaijan.

• The annual global climate investment gap is estimated to be between USD 2.5 trillion and USD 4 trillion, necessitating the large-scale mobilisation of private capital for energy system transitions, resilient infrastructure, and sustainable communities, especially in emerging markets.
• European DFIs possess substantial financial capacity, with the assets of public development banks of EU Member States estimated at EUR 3.2 trillion in 2020.
• There is significant inconsistency in how capital mobilisation is measured and reported globally. Estimates of mobilisation ratios vary widely, from 1:0.14 to 1:7.5, because DFIs, multilateral development banks (MDBs), governments, and research institutes use different metrics.
• A lack of consistent global data on the specific mobilisation tools used by individual DFIs prevents the comparison of tool efficacy across different institutions.
• DFIs are well-positioned to increase adaptation investments, which currently represent only 8% of global climate finance, as they are designed to address market failures and financing gaps where private finance is absent.

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} }