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The report identifies currency risk—specifically the mismatch between local currency revenues and hard currency debt—as a primary barrier to climate investment in EMDEs. It argues that while long-term solutions require macroeconomic reform and deeper local capital markets, immediate needs must be met through innovative hedging mechanisms. The document analyzes five specific models: a TCX donor-funded guarantee, Eco Invest Brasil, the Delta onshore DFI platform, FSD Africa's MDB portfolio transfer, and a CPI FX Hedging Facility for India. It concludes that concessional capital is essential in the short term to make these tools affordable and to catalyze private investment.

RMI conducted a pre-feasibility analysis on a high-capacity coal plant in Indonesia, finding that replacing the plant with solar and storage is the preferred solution for maximizing CO2 abatement and investor cash flow, provided sufficient land is available. The analysis highlights the necessity of blended financing to maintain affordable electricity costs during early retirement and notes that biomass co-firing is generally less profitable than other repurposing options. The study emphasizes that land characteristics and regulatory frameworks are critical determinants of a site's repurposing potential.

The CCFLA and Urban-Act National Assessment Tool provides a framework for national governments to evaluate the regulatory, financial, and institutional conditions that affect urban climate finance. The tool consists of 64 dimensions across four categories: Climate Policy, Budget and Finance, Climate Data, and Vertical and Horizontal Coordination. It aims to identify strengths and gaps in national frameworks to facilitate recommendations for improving subnational access to finance, having been piloted in India and Indonesia.

The CCFLA and Urban-Act Subnational Assessment Tool is designed to help city and regional officials identify strengths and gaps in the regulatory, institutional, and financial environments necessary to scale urban climate finance. The tool evaluates 49 dimensions across four categories: Climate Policy, Budget and Finance, Climate Data, and Vertical and Horizontal Coordination. It provides a structured six-step application process—from institutional mapping to the development of follow-up roadmaps—and includes a comprehensive directory of external resources and global case studies to guide subnational governments in improving their creditworthiness, data reporting, and intergovernmental cooperation.

The report evaluates India's readiness to scale subnational climate finance across four categories: climate policy, budget and finance, climate data, and coordination. It finds that while India has strong national commitments and policies, urban local bodies (ULBs) lack institutional mandates for climate action, suffer from limited fiscal autonomy and poor financial management, and have minimal access to climate-specific data. The analysis highlights a heavy reliance on intergovernmental transfers and a significant gap in private investment and municipal bond issuance. Key recommendations include amending state municipal acts to incorporate climate functions, expanding the scope of Central Finance Commission grants to include climate action, and strengthening the capacity of ULBs to conduct green budgeting and issue municipal bonds.

RMI conducted a pre-feasibility analysis on a coal power plant in Indonesia's Java-Bali region, evaluating four transition scenarios: baseline operation, early retirement without repurposing, early retirement with clean energy repurposing, and biomass co-firing. The analysis found that early retirement is financially feasible, especially with blended financing, and that clean repurposing via solar PV and battery storage offers the highest value and emissions reductions, provided land constraints are overcome. Conversely, biomass co-firing was found to be generally unprofitable due to high retrofit costs.

The evaluation finds that while the GCF has a prominent position in climate finance and a diverse set of instruments, its energy sector approach lacks a clearly articulated strategy and suffers from a mismatch between its stated and actual risk appetite. The portfolio is heavily skewed toward international accredited entities (IAEs) and focuses primarily on renewable energy generation, while underfinancing energy efficiency and emerging technologies like green hydrogen and large-scale storage. Results management is described as underdeveloped, with inconsistent metrics for measuring paradigm shifts and a lack of specific emissions reduction targets for the energy sector. The report recommends that the GCF clarify its role in the global energy transition, increase support for enabling environments and regulatory frameworks, and better align its risk appetite with transformational innovation.

Minister Kerrie D. Symmonds of Barbados argues that the 18-year-old Aid for Trade initiative is based on outdated assumptions and must be modernized to address the climate crisis and systemic vulnerabilities of small island developing states. He calls for a shift from traditional aid to an 'investment ambition' incorporating blended finance and private sector contributions, specifically citing the Bridgetown Initiative. Symmonds emphasizes that GDP-based eligibility for concessional financing is inadequate because a single climatic event can cause massive GDP losses, necessitating a reclassification of eligibility that accounts for vulnerability.

In 2021, IDB Invest and Engie Energia Chile (EECL) implemented a blended finance package to retire two coal units at the Tocopilla plant early and finance the 151 MW Calama wind farm. The deal utilized a results-based concessional loan where interest payments at maturity are reduced based on verified carbon emissions abated through early retirement, using a pre-agreed carbon price of $3/ton. This transaction was enabled by Chile's top-down coal phaseout policy, the lower cost of renewable energy compared to legacy coal Power Purchase Agreements (PPAs), and the involvement of the Climate Investment Funds (CIF).

The Lagos State Climate Adaptation and Resilience Plan (LCARP) identifies critical climate risks—sea-level rise, extreme rainfall, and extreme heat—and proposes a $9 billion portfolio of 33 projects to mitigate these threats. The plan emphasizes diversifying financing mechanisms beyond concessional debt to include blended finance, grants, and nature-based solutions, while recommending policy and governance reforms to attract private investment.

The FSD Program addresses the funding gap for the Paris Agreement and Sustainable Development Goals by shifting focus from the supply side of finance to the demand side. By analyzing firm-level investment decisions in low- and lower-middle-income countries (LLMICs), the program identifies the enabling conditions and blended-finance instruments—such as guarantees and risk mitigation—necessary to make sustainable projects attractive to private investors. This micro-level evidence is then used to inform macro-level global and regional policy frameworks.

The document analyzes the JET-P model as a mechanism to catalyze international and private investment for Colombia's energy transition. It highlights a significant funding gap, noting that public investment currently represents only 0.01% of required resources. By reviewing JET-P experiences in South Africa, Indonesia, Vietnam, and Senegal, the report identifies risks such as increased public debt and the need for transparent, community-led project design. It proposes prioritizing projects like energy communities and the phase-out of coal plants, while warning against financing fossil fuel infrastructure or inefficient consumption subsidies.

The Multilateral Climate Funds (MCFs)—comprising the Adaptation Fund, Climate Investment Funds, Global Environment Facility, and Green Climate Fund—have developed a consultation draft action plan to coordinate their efforts. The plan focuses on five key areas: clarifying investment profiles and harmonizing processes, coordinating capacity building and programming, improving knowledge exchange and communications, engaging with the broader international financial architecture, and establishing a formal coordination mechanism. The MCFs aim to move from individual operations toward a system-wide approach, with specific milestones set for COP29, 2026, and beyond.

The report examines the infrastructure funding gap in Canada, specifically within the water sector of the Canadian Prairies, and proposes a shift toward natural infrastructure. It identifies several private financing instruments—including carbon and biodiversity credits, outcome-based financing, natural asset companies, and insurance mechanisms—while emphasizing the need for intermediary organizations to coordinate stakeholders and the importance of Indigenous involvement in the reconciliation process.

The document provides a roadmap for Brazil to lead international efforts in reforming the global financial architecture, promoting country platforms for investment, and addressing gaps in adaptation and nature finance. It emphasizes the need for the G20 to scale up resources for Emerging Markets and Developing Economies (EMDEs) and suggests that Brazil lead by example by structuring its own Nationally Determined Contributions (NDCs) through a functional country platform by 2025.

The Cambodian Climate Financing Facility (CCFF) is a US$ 109 million initiative designed to accelerate Cambodia's transition to a low-carbon, climate-resilient economy. It consists of a US$ 100 million Lending Facility and a US$ 9 million Technical Assistance (TA) Facility. The program targets high-priority sectors including energy, transport, agriculture, forestry and other land use (AFOLU), and water. The Lending Facility, hosted by the Agricultural and Rural Development Bank (ARDB), provides wholesale and direct green loans to local financial institutions and private sector actors. The TA Facility, managed by Mekong Strategic Capital (MSC), focuses on institutional capacity building, project preparation, and the development of climate finance policy frameworks. The program expects to reduce 11.1 million tCO2e of greenhouse gas emissions and benefit 1.3 million people.

The Acumen Climate Action Pakistan (ACAP) Fund is a USD 90 million blended finance facility, requesting USD 28 million from the Green Climate Fund (GCF), to support venture and growth-stage agribusinesses in Pakistan. The fund targets three investment themes: Farmer Platforms and Financial Solutions, Smart Farming, and Post-Harvest Technologies. It aims to benefit approximately 13.1 million people by improving farmer incomes, increasing the adoption of climate-smart agriculture, and reducing post-harvest losses. The program includes a USD 10 million Technical Assistance Facility (TAF) to support portfolio companies in areas such as gender initiatives, ESG reporting, and climate adaptation. ACAP seeks to demonstrate the commercial viability of adaptation-focused business models to catalyze further private sector investment in Pakistan's agriculture sector.

The Kuali Fund-GCF is a blended finance programme designed to catalyze private investment for climate mitigation and adaptation in Latin America and the Caribbean. It targets small financial service providers (FSPs) and innovative climate companies to bridge the financing gap for SMEs and smallholder farmers. The fund employs a 'Green Index 3.0' to transform FSPs into 'Super Green' institutions that offer sustainable financial products. With a total financing of 128.2 million Euros, including 32.8 million Euros from the Green Climate Fund, the programme aims to avoid 2,707,455 tons of CO2 equivalent and reach over 242,000 direct beneficiaries over a 10-12 year lifespan.

The paper analyzes the financing gap in India's iron and steel sector, which is the country's largest industrial GHG emitter. It highlights a risk of carbon lock-in as 196 MTPA of fossil-based capacity is planned for 2021-2038. The authors propose a five-pillar framework—sectoral policies, enabling ecosystems, bankable business models, financing/derisking mechanisms, and financial sector regulations—to transition from fossil-intensive production to low-carbon technologies like green hydrogen-DRI. It details specific instruments such as Carbon Contracts for Difference (CCfD), blended debt funds, and Article 6 of the Paris Agreement to bridge the investment gap.

The briefing critiques the G20's "Better, Bolder and Bigger" MDB reform framework, arguing that its focus on leveraging private capital and streamlining processes undermines accountability, ignores debt vulnerabilities in developing nations, and fails to ensure a genuine fossil fuel phaseout. It highlights risks associated with large-scale renewable energy projects and the lack of gender-sensitive policies, urging a shift toward grants-based financing, stronger safeguards, and democratized decision-making.