Landscape of Guarantees for Climate Finance in EMDEs

The report analyzes 52 cross-border guarantee instruments from 34 entities, finding that while guarantees are critical for mobilizing private capital in EMDEs, the current landscape is fragmented. Most guarantees are climate-agnostic and focused on commercial risk and debt instruments, with significant gaps in climate-exclusive products, equity guarantees, and coverage for political and currency risks. The study recommends increasing guarantees for low-income countries and high-emitting EMDEs, and expanding the role of Multilateral Development Banks (MDBs) in offering climate-specific instruments.

• The majority of identified guarantee instruments are climate-agnostic, with 87% of the total covering both climate and non-climate projects. Specialized Institutions are the most focused on climate-specific products, with approximately 63% of their offerings being climate-exclusive, whereas MDBs dedicate only one guarantee instrument exclusively to climate initiatives.
• Guarantee products are heavily skewed toward debt investments, with 39 products covering only debt and 12 covering both debt and equity; no sampled products focused exclusively on equity. This mirrors broader climate finance trends where debt-based flows significantly exceed equity flows.
• Commercial risk coverage is more widely available than political or currency risk coverage, with 42 products covering commercial risks compared to 23 for political and 19 for currency risks. Political and currency risk products are often described as expensive, complex, and limited in geographical scope and affordability.
• While over half of the mapped guarantees target EMDEs, there is a perceived mismatch as a significant share is directed toward middle- and high-income countries rather than low-income countries. Additionally, there is a notable regional gap in Asia and Latin America, with a predominant focus on Africa among Specialized Institutions.
• The distribution of guarantee coverage is relatively balanced between the public and private sectors, with 37 products covering public sector investments and 44 covering private sector investments, though Export Credit Agencies (ECAs) show a stronger preference for the private sector.

APA

Yahmed, Z. B., Pinko, N., Grant, C., & First, J. (2024). Landscape of Guarantees for Climate Finance in EMDEs. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2024/02/Guarantee-Report-Final-2024_FINAL.pdf

Chicago

Yahmed, Zeineb Ben, Nicole Pinko, Chris Grant, and Jonathan First. Landscape of Guarantees for Climate Finance in EMDEs. Climate Policy Initiative, 2024. https://www.climatepolicyinitiative.org/wp-content/uploads/2024/02/Guarantee-Report-Final-2024_FINAL.pdf.

Wikipedia

{{cite report |last1=Yahmed |first1=Zeineb Ben |last2=Pinko |first2=Nicole |last3=Grant |first3=Chris |last4=First |first4=Jonathan |title=Landscape of Guarantees for Climate Finance in EMDEs |publisher=Climate Policy Initiative |date=February 2024 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2024/02/Guarantee-Report-Final-2024_FINAL.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{yahmed2024landscape, author = {Yahmed, Zeineb Ben and Pinko, Nicole and Grant, Chris and First, Jonathan}, title = {{Landscape of Guarantees for Climate Finance in EMDEs}}, institution = {Climate Policy Initiative}, year = {2024}, month = feb, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2024/02/Guarantee-Report-Final-2024_FINAL.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }