Guidebook on Facilitating Climate FDI

The guidebook outlines four key measures for IPAs to increase climate FDI: aligning strategies and incentives, creating sustainable supplier databases, mapping multinational enterprise (MNE) commitments to project pipelines, and reforming international investment agreements (IIAs). It emphasizes the role of public-private collaboration and the need for targeted de-risking instruments to close the climate finance gap in developing nations.

• Climate FDI is defined as foreign direct investment that contributes to a country's climate-aligned growth objectives, including projects that are zero or low carbon, reduce carbon footprints, support greenhouse gas reduction, or improve infrastructure resilience to climate change.
• IPAs can attract more climate FDI by integrating climate goals into their strategies and KPIs, prioritizing sectors based on Nationally Determined Contributions (NDCs), and utilizing both fiscal and non-fiscal incentives.
• Public participation is critical for climate projects in developing countries due to high upfront costs and risks; approximately 50% of such projects require public involvement, rising to 72% for climate adaptation projects.
• The creation of a Supplier Database with Sustainability Dimensions (SD2) helps MNEs identify local sustainable suppliers and encourages domestic firms to adopt sustainable operations to attract foreign capital.
• IPAs can bridge information asymmetries by mapping the public climate commitments of MNEs and creating a pipeline of vetted, government-endorsed 'investment projects ready to offer' (IPROs) that align with those commitments.
• Existing International Investment Agreements (IIAs) may hinder climate action by protecting investor rights over a state's right to regulate environmental policy, potentially leading to a "regulatory chill" regarding the phase-out of fossil fuels.
• Modernizing IIAs to include specific climate FDI provisions, preambular clauses reaffirming climate action, and investor obligations for sustainable investment can help align international legal regimes with the Paris Agreement.

APA

World Economic Forum (2023). Guidebook on Facilitating Climate FDI. https://www3.weforum.org/docs/WEF_Guidebook_on_Facilitating_Climate_FDI_2023.pdf

Chicago

World Economic Forum. Guidebook on Facilitating Climate FDI. 2023. https://www3.weforum.org/docs/WEF_Guidebook_on_Facilitating_Climate_FDI_2023.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Guidebook on Facilitating Climate FDI |date=July 2023 |url=https://www3.weforum.org/docs/WEF_Guidebook_on_Facilitating_Climate_FDI_2023.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2023guidebook, author = {{World Economic Forum}}, title = {{Guidebook on Facilitating Climate FDI}}, institution = {World Economic Forum}, year = {2023}, month = jul, url = {https://www3.weforum.org/docs/WEF_Guidebook_on_Facilitating_Climate_FDI_2023.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }