Landscape of Guarantees for Climate Finance in EMDEs

The Climate Policy Initiative (CPI) conducted a scoping analysis of cross-border guarantee instruments to understand their role in mobilizing private climate finance for emerging markets and developing economies (EMDEs). The study identified 52 instruments from 34 entities, finding that while guarantees are powerful tools for leveraging finance, the current landscape is fragmented, predominantly focused on debt and commercial risks, and lacks a strong emphasis on climate-exclusive mandates.

• A scoping analysis by the Climate Policy Initiative identified 52 distinct cross-border guarantee instruments provided by 34 entities. These providers are categorized into four types: Multilateral development banks (MDBs), Development finance institutions (DFIs), Export credit agencies (ECAs), and specialized institutions.
• The majority of identified guarantees are climate-agnostic rather than climate-exclusive. Only a small number of DFIs and specialized institutions, such as the U.S. International Development Financing Corporation and the Green Guarantee Company, offer guarantees specifically for climate projects.
• Guarantee instruments are heavily skewed toward debt investments and commercial risk coverage. There is a notable lack of equity investment opportunities and limited, expensive, or complex coverage for political and currency risks in EMDEs.
• Geographically, more than 50% of the mapped guarantees target EMDEs, with a particular concentration in middle-income countries and a pronounced focus on Africa, primarily driven by MDBs and specialized institutions.
• CPI identifies several critical research gaps to improve the scaling of guarantees, including the need to understand the cost of obtaining guarantees, utilization rates, and the scale required to meet the estimated USD 2.4 trillion annual need for the green transition in EMDEs (excluding China).

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} }