The Role of Development Finance Institutions and Development Banks in Scaling Up Green and Climate Investments

The document analyzes the 2012 green and climate finance activities of 15 surveyed DFIs and DBs, who committed approximately USD 18.2 billion. While these institutions play a significant role in financing green economic development, their catalytic potential is hindered by a shortage of bankable projects and the uncertain viability of prototype technologies. The report details the sectoral distribution of funds—favoring mitigation and sustainable transport—and examines the ongoing financing of fossil fuel projects. It concludes by suggesting policy improvements and enhanced transparency through standardized reporting to further scale green investments.

• In 2012, the 15 surveyed DFIs and DBs committed approximately USD 18.2 billion to green and climate finance, with 64% of these funds allocated to mitigation interventions.
• The majority of mitigation-related funding was directed toward sustainable transport (33%), renewable energy (28%), and energy efficiency (17%), with solar energy receiving about USD 1 billion.
• Green and climate finance is primarily directed to the public sector (69%), while only 19% goes directly to private sector actors, with the remaining 12% channeled indirectly.
• The primary constraint to increasing green investments is a shortage of financially viable and bankable projects, followed by limited availability of equity or dedicated financial resources (19%) and a shortage of skilled human resources (15%).
• DFIs and DBs continue to finance fossil fuel projects, with 12 respondents reporting new commitments to such projects ranging between less than 1% and 10% of their total annual new commitments over the last 5 years.
• South Asian countries were the largest recipients of the surveyed green and climate finance in 2012, receiving approximately USD 5.4 billion, or 30% of the total.
• While 12 of the surveyed institutions publicly disclose green financing information, there is a lack of consistent data regarding the carbon intensity of portfolios, fossil-fuel related funding, and the specific role of intermediaries in channeling funds to private entities.

APA

Buchner, B., Painter, C., Trabacchi, C., & Wilkinson, J. (2013). The Role of Development Finance Institutions and Development Banks in Scaling Up Green and Climate Investments. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2014/04/CPI-Brief-for-DFI-DB-meeting.pdf

Chicago

Buchner, Barbara, Claire Painter, Chiara Trabacchi, and Jane Wilkinson. The Role of Development Finance Institutions and Development Banks in Scaling Up Green and Climate Investments. Climate Policy Initiative, 2013. https://www.climatepolicyinitiative.org/wp-content/uploads/2014/04/CPI-Brief-for-DFI-DB-meeting.pdf.

Wikipedia

{{cite report |last1=Buchner |first1=Barbara |last2=Painter |first2=Claire |last3=Trabacchi |first3=Chiara |last4=Wilkinson |first4=Jane |title=The Role of Development Finance Institutions and Development Banks in Scaling Up Green and Climate Investments |publisher=Climate Policy Initiative |date=4 September 2013 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2014/04/CPI-Brief-for-DFI-DB-meeting.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{buchner2013role, author = {Buchner, Barbara and Painter, Claire and Trabacchi, Chiara and Wilkinson, Jane}, title = {{The Role of Development Finance Institutions and Development Banks in Scaling Up Green and Climate Investments}}, institution = {Climate Policy Initiative}, year = {2013}, month = sep, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2014/04/CPI-Brief-for-DFI-DB-meeting.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }