Unlocking Private Climate Investment

The paper analyzes the roles of OPIC and Ex-Im Bank in climate finance, noting that together they intermediated 37% (over $2 billion) of total US assistance to developing countries for climate activities between 2010 and 2012. It argues that tailoring financial instruments—such as loans, guarantees, and insurance—to specific sectoral risks can unlock private finance. The authors highlight a complementary relationship where OPIC often acts as a first-mover for high-risk projects, while Ex-Im Bank provides inexpensive concessional debt for more established players. Recommendations include increasing instrument flexibility, addressing institutional barriers like employee incentives and staffing, and improving coordination between public financial institutions to streamline due diligence and co-financing.

• Tailoring traditional financial instruments to address risks specific to climate-relevant sectors can unlock new private finance sources. Examples include OPIC's use of a direct loan as a portfolio credit facility for ContourGlobal Solutions Holdings and a loan guarantee for SunEdison Thailand as a revolving construction bridge financing facility, as well as political risk insurance against changes in climate-related policies.
• Public financial institutions maximize impact by occupying complementary roles based on their risk profiles. OPIC typically serves as a first-mover for first-of-their-kind projects and new instruments, whereas Ex-Im Bank offers inexpensive concessional debt but has a lower risk tolerance, tending to finance established players. This allows OPIC clients to eventually graduate to Ex-Im Bank.
• Between 2010 and 2012, OPIC and Ex-Im Bank exclusively financed private sector projects, intermediating over $2 billion, which represented 37% of total US assistance to developing countries for climate change activities.
• To maximize private sector investment, public institutions should provide a diverse suite of instruments (loans, guarantees, equity/quasi-equity, and insurance) and develop insurance specifically for political and regulatory risks in climate projects, such as those related to REDD, carbon credit/Clean Development Mechanism (CDM), and feed-in tariffs.
• Institutional barriers to climate investment can be mitigated by creating governance structures, employee incentives, and long-term mandates that prioritize sustainable activities, as well as improving data transparency regarding project costs and public sector co-financing.

APA

World Resources Institute (n.d.). Unlocking Private Climate Investment. https://www.wri.org/research/unlocking-private-climate-investment

Chicago

World Resources Institute. Unlocking Private Climate Investment. n.d. https://www.wri.org/research/unlocking-private-climate-investment.

Wikipedia

{{cite report |author=World Resources Institute |title=Unlocking Private Climate Investment |url=https://www.wri.org/research/unlocking-private-climate-investment |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendunlocking, author = {{World Resources Institute}}, title = {{Unlocking Private Climate Investment}}, institution = {World Resources Institute}, url = {https://www.wri.org/research/unlocking-private-climate-investment}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }