Landscape of Guarantees for Climate Finance in EMDEs

The Climate Policy Initiative (CPI) mapped 52 cross-border guarantee instruments from 34 entities, including MDBs, DFIs, ECAs, and specialized institutions. The analysis reveals that while guarantees can mobilize 6-25 times more financing than loans, the current landscape is fragmented, predominantly focused on debt and commercial risks, and largely climate-agnostic. Most guarantees target middle-income countries, with a notable focus on Africa. The report identifies a lack of climate-exclusive guarantees and limited equity investment coverage, recommending further research into the cost, duration, and additionality of these instruments to help meet the estimated USD 2.4 trillion annual requirement for the green transition in EMDEs (excluding China).

• Cross-border guarantees are highly effective at mobilizing finance, with studies indicating they can mobilize 6-25 times more financing than loans. An OECD evaluation showed they leveraged 26% of all mobilized private finance between 2018-2020.
• CPI identified 52 cross-border guarantee instruments from 34 entities, categorized as multilateral development banks (MDBs), development finance institutions (DFIs), export credit agencies (ECAs), and specialized institutions.
• The majority of available guarantees are climate-agnostic rather than climate-exclusive, with only a few DFIs and specialized institutions, such as the U.S. International Development Financing Corporation and the Green Guarantee Company, offering climate-specific products.
• Guarantee instruments predominantly cover commercial risks and debt investments, with a low presence of equity investment opportunities and limited, expensive, or complex coverage for political and currency risks.
• More than half of the mapped guarantees target EMDEs, particularly middle-income countries, with a pronounced focus on Africa.

APA

Climate Policy Initiative (2024). Landscape of Guarantees for Climate Finance in EMDEs. https://www.climatepolicyinitiative.org/publication/landscape-of-guarantees-for-climate-finance-in-emdes/

Chicago

Climate Policy Initiative. Landscape of Guarantees for Climate Finance in EMDEs. 2024. https://www.climatepolicyinitiative.org/publication/landscape-of-guarantees-for-climate-finance-in-emdes/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Landscape of Guarantees for Climate Finance in EMDEs |date=22 February 2024 |url=https://www.climatepolicyinitiative.org/publication/landscape-of-guarantees-for-climate-finance-in-emdes/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2024landscape, author = {{Climate Policy Initiative}}, title = {{Landscape of Guarantees for Climate Finance in EMDEs}}, institution = {Climate Policy Initiative}, year = {2024}, month = feb, url = {https://www.climatepolicyinitiative.org/publication/landscape-of-guarantees-for-climate-finance-in-emdes/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }