Unlocking Private Climate Investment

This research paper by the World Resources Institute (WRI) examines how the Overseas Private Investment Corporation (OPIC) and the Export-Import Bank of the United States (Ex-Im Bank) use financial instruments to mobilize private sector investment for climate change mitigation and adaptation in developing countries.

• Tailoring financial instruments to specific climate-sector risks can attract new private finance. Examples include OPIC's use of a direct loan to ContourGlobal Solutions Holdings as a portfolio credit facility, a loan guarantee for SunEdison Thailand as a revolving construction bridge financing facility, and political risk insurance against changes in climate-related policies.
• Public financial institutions can maximize impact by adopting complementary roles based on their risk tolerance. OPIC often acts as a first-mover by testing new instruments and supporting first-of-their-kind projects, while Ex-Im Bank provides low-cost concessional debt to more established players. This allows clients to graduate from OPIC to Ex-Im Bank support.
• 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 increase private investment, public institutions should provide a diverse suite of instruments (loans, guarantees, equity, and insurance) and develop insurance for specific regulatory risks such as feed-in tariffs, REDD, and carbon credit/Clean Development Mechanism (CDM).
• Institutional barriers to climate investment can be addressed by creating governance structures and employee incentives that prioritize sustainable activities, improving data transparency on project costs and co-financing, and coordinating with other donors to streamline due diligence. An agreement between OPIC and the IFC is cited as a successful example of reducing costs and time through collaboration.

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} }