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The Green Climate Fund (GCF) serves as the largest dedicated climate fund for developing countries, accounting for two-thirds of all multilateral climate finance last year. The GCF focuses on bridging the adaptation finance gap, where only one-fifth of global climate funds are currently allocated. To scale action, the GCF employs a strategy involving the translation of Nationally Determined Contributions (NDCs) into investment plans, piloting innovative technologies and business models, utilizing blended finance to crowd-in private investment, and strengthening the capacity of domestic financial institutions. Key initiatives include the Global Sub-national Climate Fund and partnerships to de-risk investments in adaptation technologies and coral reef protection.

The GCF and GEF have established a Long-Term Vision (LTV) to move beyond their Pilot Coordinated Engagement (launched in 2018) toward a structured partnership. The LTV focuses on three pillars: collaborative programming for major initiatives (such as the Great Green Wall and Amazon initiatives), sharing knowledge and methodologies to maximize climate impact, and improving joint communication. The funds aim to leverage their unique strengths—GEF's focus on upstream enabling environments and multi-convention synergies, and GCF's ability to mobilize large-scale blended finance for climate-specific benefits—to reduce duplication and streamline support for developing countries.

The Framework for Sustainable Finance Integrity provides a structured approach to evaluate and drive the sustainability commitments of financial actors. It establishes 'Minimum Benchmarks' that all institutions should adopt—such as aligning portfolios with the Paris Agreement and eliminating new coal finance—and 'Leadership Benchmarks' for those seeking to drive transformative change, including science-based five-year emissions targets and comprehensive TCFD alignment. The report emphasizes the need for a 'whole-of-government' approach, the integration of biodiversity and just transition into financial mandates, and the necessity of cross-sector collaboration to avoid siloed efforts that fail to meet global climate goals.

The report argues that India must shift its policy focus from large grid-scale projects to distributed renewable energy (DRE) to meet its target of 175 GW of renewable energy by 2022. It identifies a critical investment gap, estimating that annual DRE investment must increase from USD 2 billion in 2019 to USD 18 billion by 2024. Key barriers include the financial instability of state electricity distribution companies (DISCOMs), which has led to hostility toward net-metering and the imposition of grid support charges. The report recommends a rejuvenated policy framework that integrates DISCOMs as demand aggregators and service providers across several DRE applications, including rooftop solar, energy storage, EV charging, and solar-powered agricultural tools.

The ASEAN sustainable finance market reached a record high of USD 12.8bn in GSS bond and loan issuance in 2020. Singapore leads the region in volume, particularly through green loans for real estate, while Indonesia and Thailand show strong growth driven by sovereign issuances. The market is increasingly diversifying into sustainability-linked instruments and social bonds, although the latter remained less active in 2020. The report highlights the critical role of government support, the development of regional and national taxonomies, and the influence of Development Finance Institutions (DFIs) in scaling green infrastructure.

The Green Economy Coalition introduces the Triple B Framework to address capital misallocation and sluggish growth in the green transition. The framework identifies 'bottlenecks' (structural, processual, and cognitive barriers) and 'blind spots' (behavioral biases resulting from homogeneity in the finance industry) that hinder investment. It redefines 'blended finance' to include non-financial capital—such as social, political, and cultural capital—arguing that these are often more critical than financial capital in emerging markets. The report suggests that supporting 'ecosystem builders' and sequencing non-financial capital before financial injections can de-risk investments and better serve developing countries.

The report identifies significant opportunities for green finance in Central America and the Caribbean (CAC), noting that while the market is small with only six deals to date, there is high potential for expansion in renewable energy, low-carbon transport, sustainable water and waste management, sustainable agriculture, and the blue economy. It highlights the role of the Central American Bank for Economic Integration (CABEI) and regional stock exchanges in driving this growth, while providing a guide for issuers to align with international standards like the Climate Bonds Taxonomy.

The report highlights Malaysia's leadership in sustainable finance, particularly through the issuance of green sukuk, and identifies a significant pipeline of green infrastructure projects. It emphasizes the need for private capital to meet a cumulative infrastructure investment requirement of roughly USD 460bn from 2016-2040. Key opportunities are detailed in renewable energy (especially solar and biomass), low-carbon transport (rail and EVs), sustainable water management, and waste-to-energy projects.

The policy brief argues that National Development Banks (NDBs) are ideal intermediaries for scaling climate-smart urban infrastructure due to their local knowledge, yet few are currently mandated to finance local governments or green projects. The research introduces an NDB Maturity Model consisting of 12 dimensions across strategic, financial, business, and operational parameters to standardize the assessment of NDB capacity. It identifies key barriers including unspecific mandates, lack of sectoral expertise, and insufficient capitalization. The document recommends that International Financial Institutions (IFIs) support NDBs by providing project preparation facilities, technical assistance, and access to innovative capital and de-risking instruments to catalyze private investment.

The document argues that National Development Banks (NDBs) are ideally positioned to bridge the financing gap for climate-smart urban infrastructure due to their local knowledge and proximity to cities. However, it notes that only 4% of Public Development Banks are specifically mandated to finance local governments. The research identifies barriers across policy, institutional, and financial levels—such as restrictive legal structures, lack of bankable project pipelines, and insufficient capitalization. To address these, the authors introduce an 'NDB Maturity Model' consisting of twelve dimensions across strategic, financial, business, and operational parameters. The brief recommends that national ministers update NDB mandates to include climate focus, reassess legal structures to allow for higher risk and longer tenors, and integrate NDBs into national climate goals and infrastructure strategies. A case study on Indonesia's PT SMI and the 'SDG Indonesia One' platform is provided as an example of using blended finance to implement SDG-oriented infrastructure projects.

This policy brief examines the supply and demand barriers preventing National Development Banks (NDBs) from financing green urban infrastructure. It introduces a 12-dimension 'maturity model' across strategic, financial, business, and operational parameters to help NDBs optimize their capacity. The brief argues that while NDBs are ideally positioned as intermediaries, few have the specific mandates or capitalization required to support local governments, necessitating coordinated action from national governments and development finance institutions.

The document analyzes the private sector's engagement with sustainable development, moving from a history of disinformation and lobbying against regulation to a current landscape of sustainability pledges and impact investing. It argues that while 'greening' existing systems is valuable, true sustainability requires a shift toward 'regenerative equity' through Sustainability-Oriented Hybrid Organizations (SOHOs) that prioritize people and nature over profit-driven growth.

The document argues that Brazilian municipalities, particularly small and medium-sized ones, face significant credit and technical barriers to financing infrastructure. It proposes the use of Pooled Financial Management Mechanisms (MFGCs) to aggregate demand and reduce risk, drawing on international examples from France, the Nordic countries, Mexico, India, and the Philippines. The brief identifies regulatory hurdles in Brazil, such as the Fiscal Responsibility Law, and recommends updating the legal framework to allow subnational consortia more autonomy in raising funds and improving governance to attract green and sustainable capital.

The document argues that Brazilian municipalities, particularly small and medium-sized ones, face significant financial and regulatory barriers to infrastructure investment. It suggests that subnational consortia can overcome these hurdles by adopting Pooled Finance Mechanisms (PFMs)—such as club deals, aggregation platforms, and bond banks—to access capital markets and attract green investment. The brief identifies a USD 1.3 trillion green investment opportunity in Brazil and recommends updating Law 11,107/2005 and the Law of Fiscal Responsibility to facilitate autonomous fundraising and improve governance for public consortia.

China has made significant progress in establishing a green financial system, with green credit and bonds becoming the largest in the world. However, the system remains heavily dominated by public actors, with public sources accounting for 51% of total green finance. To meet its 2015 environmental standards and climate targets, China requires an estimated USD 1.4 trillion in annual investment over the next decade, meaning current finance levels must scale up by at least four times. Key barriers to private capital include a lack of transparency in project pipelines, high search costs for impact investors, and a preference for state-owned enterprises (SOEs) in formal financing channels. The report highlights opportunities in green fintech, such as Ant Forest, and matchmaking platforms like those in Huzhou. It also examines China's outbound finance, noting that half of energy-related investments in Belt and Road Initiative (BRI) countries went to fossil fuels, and suggests implementing mandatory exclusion lists and green standards to decarbonize these flows.

The document analyzes the private sector's complex relationship with sustainable development, noting a history of corporate disinformation and lobbying against environmental regulations. It identifies three primary modes of engagement: active obstruction, partnership with governments to implement Sustainable Development Goals (SDGs), and the emergence of 'Sustainability-Oriented Hybrid Organizations' (SOHOs) that prioritize regenerative equity over profit. The author argues that while impact investing and 'greening' existing systems are valuable, they may be insufficient to achieve absolute decoupling of growth from emissions, recommending that policymakers support systemic transformations and SOHOs.

The report analyzes climate finance in South Africa for 2017-2018, tracking an annual average of R62.2 billion. It identifies a significant gap between current funding and the R8.9 trillion estimated by the IFC as necessary to achieve South Africa's Nationally Determined Contributions (NDCs) by 2030. Public finance averaged R22 billion annually, with a strong domestic preference, while private finance averaged R35.3 billion, focused exclusively on mitigation. The document recommends developing standardized climate finance definitions, improving public-private coordination, and scaling blended finance to leverage private capital.

The document outlines a strategic framework for accelerating climate adaptation in Africa, emphasizing the integration of indigenous knowledge with scientific data and the need for decentralized finance. It advocates for investing in a climate-smart workforce, resilient water and energy systems, and nature-based solutions to protect biodiversity and human livelihoods.

The South African government aims to mobilise R1 trillion from the private sector over 10 years via an Infrastructure Fund to address an infrastructure deficit and revive economic growth. The document argues that the current focus on 'de-risking' private investment—through blended finance, public-private partnerships (PPPs), and converting infrastructure into asset classes—often shifts excessive risk to the public fiscus and may fail to deliver developmental outcomes. It cites the Gautrain and prison facilities in Bloemfontein and Louis Trichardt as examples of costly public-sector liabilities. The author recommends that the state maintain leadership in structural economic transformation, specifically shifting away from fossil fuels and extractive industries, while implementing stricter governance, transparency, and human rights due diligence for all private-sector involvements.

The document examines South Africa's strategy to mobilize R1 trillion in private investment through an Infrastructure Fund to address a widening infrastructure deficit. It analyzes three primary de-risking instruments: blended finance, the conversion of infrastructure into tradeable asset classes, and public-private partnerships (PPPs). The author argues that these mechanisms often shift excessive risk to the state through contingent liabilities and high transaction costs, while prioritizing 'bankable' economic projects over essential social infrastructure in poor and rural areas. The paper concludes that the current focus on private capital overplays benefits and underplays the risks of public-private arrangements, recommending a governance framework that prioritizes human rights and sustainable development over profit maximization.