Landscape of Guarantees for Climate Finance in EMDEs

This report by the Climate Policy Initiative (CPI) maps the landscape of cross-border guarantees used to mobilize private capital for climate finance in emerging markets and developing economies (EMDEs). Through a scoping analysis of 52 guarantee instruments from 34 entities, the report identifies a fragmented landscape dominated by debt-focused, climate-agnostic products that primarily cover commercial risks. It highlights significant gaps in coverage for low-income countries, equity investments, and political and currency risks, while providing recommendations for future research to scale these tools to meet the estimated USD 2.4 trillion annual need for green transitions in EMDEs.

• The landscape of cross-border guarantees is fragmented, with 52 distinct instruments identified from 34 key entities. These providers are categorized into four main types: Multilateral Development Banks (MDBs), Development Finance Institutions (DFIs), Export Credit Agencies (ECAs), and Specialized Institutions.
• Most guarantee instruments are 'climate-agnostic,' meaning they cover both climate and non-climate projects. Only a small proportion are 'climate-exclusive,' with Specialized Institutions leading in this area (63% of their offerings) while MDBs have a minimal focus on exclusive climate initiatives.
• There is a strong predominance of debt guarantees over equity guarantees. This mirrors the broader trend in climate finance flows, though the report suggests that the lack of equity-focused guarantees for political and currency risks may be a binding constraint on finance flows in EMDEs.
• Commercial risks are the most widely covered, while political and currency risks are less emphasized. Political and currency risk products are often described as expensive, complex, and limited in geographical scope and affordability.
• While more than half of the mapped guarantees target EMDEs, there is a mismatch in distribution. A significant share is directed toward middle- and high-income countries, and there is a notable regional gap in Asia and Latin America compared to a predominant focus on Africa.
• Guarantee coverage is relatively balanced between the public and private sectors, with a slight preference for the private sector among providers.

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} }