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The report finds that finance for energy access in high-impact countries (HICs) remains critically insufficient. In 2019, tracked electricity finance in HICs fell to USD 32 billion, with residential access funding at less than one-third of the required annual investment. Clean cooking investment has stagnated around USD 130 million annually, far below the USD 4.5 billion needed. While private investment in clean cooking reached a peak of USD 56 million in 2019, multilateral DFI support plummeted. The report emphasizes the need for climate-resilient infrastructure, as seen in Mozambique, and highlights divergent technological paths in Ghana (LPG) and Vietnam (biogas).

The report finds that global investment for energy access is critically insufficient. Finance for electricity in high-impact countries (HICs) fell to USD 32 billion in 2019, while clean cooking commitments stagnated around USD 130 million, far below the USD 4.5 billion annual need. While grid-connected renewables became the top electricity sector in 2019, decentralized solutions remain severely underfunded. The report emphasizes the need for climate-resilient infrastructure, as seen in Mozambique, and explores divergent clean cooking pathways in Ghana (LPG) and Vietnam (biogas).

The document argues that the financial system's current inertia and short-term bias prevent the redirection of private capital toward net-zero, climate-resilient economies. It emphasizes that limiting warming to 1.5°C is technically feasible but requires a dramatic scale-up of investment in energy, land, urban, and industrial systems. The report advocates for a dual approach of 'market fixing' (carbon pricing and risk disclosure) and 'market shaping' (de-risking and policy support) to overcome investment barriers. In the context of Covid-19, it highlights the risk of 'colourless' recovery packages entrenching fossil fuel dependence and proposes integrating NDCs into investment plans, alleviating debt through climate swaps, utilizing multi-sovereign guarantee funds, and expanding green bond markets to support developing nations.

The report identifies 23 financial transaction mechanisms and 35 enabling frameworks aimed at protecting and restoring nature. It categorizes these mechanisms into fiscal interventions, regulatory instruments, new government-enabled markets, traditional market-based instruments, and hybrid mechanisms. The authors argue that while innovation is high in identifying revenue streams, most mechanisms lack scale due to a reliance on public funding, a need for high private-value-capture potential, and a lack of performance certainty for large capital providers.

The report finds that energy finance in high-impact countries (HICs) is critically insufficient to meet SDG7 targets. In 2019, tracked electricity finance in HICs fell to USD 32 billion, with residential access funding at only one-third of the required annual investment. Clean cooking investment has stagnated around USD 130 million annually, far below the USD 4.5 billion needed. While there is a positive shift away from fossil fuel electricity generation and an increase in private finance for clean cooking, significant gaps remain, particularly in Sub-Saharan Africa. The report advocates for increased climate resilience in infrastructure, the scaling of decentralized energy solutions, and the integration of clean cooking into national climate policies and NDCs.

The report analyzes the finance gaps for universal electricity and clean cooking access in Ghana, Mozambique, and Vietnam. It finds that achieving universal Tier 1 electricity and Tier 4 clean cooking access across these three countries will cost between USD 38 billion and 48 billion. The study highlights significant affordability gaps for end-users and a lack of private sector finance, particularly for small and medium enterprises. It recommends a blend of grants, concessional debt, equity, and results-based financing (RBF), alongside regulatory reforms and gender-inclusive policies, to unlock private sector capacity and reach the most vulnerable populations.

The Global Resilience Partnership (GRP), in collaboration with the UNDP and GEF, is seeking Expressions of Interest from organizations managing innovative finance mechanisms in fragile and conflict-prone regions. The initiative aims to support private sector solutions that address the 'triple threat' of COVID-19, climate change-induced extreme weather, and geopolitical instability. Selected organizations will receive grants, technical assistance from a multidisciplinary mentoring facility, and networking opportunities to improve the scale and effectiveness of their funds. Eligible mechanisms must be based in specific Least Developed Countries (LDCs), demonstrate a sustainable revenue model, and focus on the intersection of climate adaptation, food and water security, and disaster risk reduction.

In 2019, IDFC members committed $197 billion in green finance, a 47% increase from 2018. Climate finance dominated this total at 95% ($187 billion), with mitigation projects receiving the largest share ($163.5 billion), primarily in transport and renewable energy. Adaptation finance grew for the third consecutive year to $19 billion. The majority of finance (74%) originated from non-OECD institutions and was largely deployed domestically, with the East Asia and Pacific region receiving the largest geographic share (69%). Loans remained the primary instrument, accounting for 95% of commitments.

The document analyzes COVID-19 recovery funding for cities, noting that while USD 1.1 trillion was pledged, the vast majority (USD 916 billion) targeted short-term liquidity rather than long-term climate resilience. It identifies gaps in funding programming and recommends that funders structure instruments for direct city access, utilize project preparation facilities, and leverage city networks to bridge the investment gap for green infrastructure.

The report finds that climate finance for small-scale agriculture is disproportionately low, averaging USD 10 billion annually in 2017/2018, which represents only 1.7% of total tracked global climate finance. This funding is overwhelmingly public (95%) and primarily delivered via grants (50%). The analysis highlights a significant gap between these flows and the estimated annual financial needs of small-scale farmers, which are approximately USD 240 billion. The report identifies critical barriers, including limited land tenure, high transaction costs for dispersed customers, and a lack of private sector investment. It recommends enhancing public-private collaboration through blended finance, implementing weather-indexed insurance, and improving data collection on domestic and private financial flows to better target climate-smart agricultural investments.

The Global Innovation Lab for Climate Finance (the Lab) has supported 49 instruments that mobilized over USD 2.3 billion. This document identifies four critical success factors for scaling these innovations: establishing a track record, building economies of scale, assembling a robust team and governance structure, and securing strategic long-term partnerships. Through case studies of Climate Investor One, Energy Savings Insurance, and Long-Term Foreign Exchange Risk Management, the brief demonstrates how these factors enable instruments to move beyond initial implementation to broader geographic or sectoral replication.

The report examines the 'adaptation gap,' noting that annual costs for adaptation in developing countries could reach USD 500 billion by 2050, while current flows remain insufficient and skewed toward mitigation. It analyzes how MDBs are transitioning from stand-alone climate projects to a 'Paris alignment' paradigm where all development finance is climate-resilient. Key barriers identified include a lack of technical expertise in developing countries, the high upfront costs of climate-proofing (10-20% of finance), and the difficulty of attracting private sector investment due to a lack of immediate revenue streams. The document recommends increased technical assistance for National Adaptation Plans (NAPs) and the use of innovative blended finance instruments to catalyze private capital.

The document examines the impact of the 2014–2016 Ebola outbreak on Official Development Assistance (ODA) in Sierra Leone, finding that energy sector financing declined sharply as funds were redirected to emergency health responses. It argues that the interlinkages between energy access (SDG7) and healthcare (SDG3) must be recognized to avoid repeating these mistakes during the COVID-19 pandemic. The brief recommends integrated planning, increased public-private cooperation, and the use of renewable energy for economic recovery.

The document examines how the 2014–2016 Ebola outbreak in Sierra Leone led to a sharp decline in energy sector financing as Official Development Assistance (ODA) was redirected toward immediate health emergencies. It argues that this siloed approach undermined long-term healthcare resilience, as reliable electricity is critical for medical services. To avoid repeating these mistakes during the COVID-19 pandemic, the brief recommends integrated planning between the energy and health sectors, increased de-risking of private investments, and the use of renewable energy for economic recovery.

The document argues that public funds alone cannot meet Africa's growing energy demands, which require an estimated $120 billion annually until 2040. It advocates for 'green financing'—blending public, development, and private capital—to reduce investment risks and improve affordability. Using Kenya as a model, the brief details how instruments like Partial Risk Guarantees, concessional loans, and Feed-in Tariffs have facilitated large-scale wind and geothermal projects. It specifically encourages the European Union to leverage its development finance institutions to create risk-mitigation products and support local private sector partnerships to accelerate the continent's green transition.

The policy brief examines the opportunities and challenges of a sustainable energy transition partnership between the African Union (AU) and the European Union (EU). It highlights Africa's vast renewable potential and the EU's need for clean energy, while cautioning against post-colonial rhetoric and the economic risks for African fossil-fuel-dependent nations. The authors recommend a joint vision focused on infrastructure investment, technology transfer, and job creation to ensure a just transition.

The Africa Energy Guarantee Facility (AEGF), a risk-sharing instrument launched by the European Investment Bank in 2018, aims to unlock $1.4 billion in clean energy investment across Africa by providing insurance against political and sovereign risks. While the facility leverages the EU's position as a major investor and supports the African Trade Insurance Agency (ATI), its effectiveness may be hindered by high transaction costs, partial risk coverage, and low investor awareness. The document argues that for the AEGF to succeed, African policymakers must establish enabling regulatory frameworks and promote reforms that facilitate foreign direct investment and technical exchanges in climate-resilient infrastructure.

The Green Climate Fund (GCF) emphasizes the critical role of coral reefs in climate resilience and mitigation, noting that 1.5°C of warming could cause a 70-90% decline in reefs. The GCF highlights the 'widening financing gap' for these ecosystems and supports the Global Fund for Coral Reefs' goal of using blended finance to catalyze private investment for vulnerable countries, including SIDS and LDCs. The GCF cites its Blue Action Fund project in the Western Indian Ocean as an example of its current investment in marine ecosystems.

The Sub-national Climate Finance Initiative (SnCF) is designed as a blended finance private equity fund paired with a grant-funded Technical Assistance Facility (TAF) to support mid-sized sustainable infrastructure in developing countries. The Fund targets a total raise of USD 750 million, consisting of a USD 150 million concessional tranche and USD 600 million in commercial capital, aiming to invest in sustainable energy, waste and sanitation, and nature-based solutions. The TAF, targeting USD 28 million, focuses on project preparation, impact certification via Gold Standard, and local government capacity building. The initiative aims to mobilize up to USD 3.8 billion in total finance, with a target of 35-50 projects across up to 20 countries. Key target markets identified include Chile, South Africa, North Macedonia, Mexico, and Jordan. The Fund projects a net IRR of 9.4% for commercial investors and 5.4% for the concessional tranche, with a goal to avoid 77 million tonnes of CO2 equivalent over the infrastructure lifetime.

The document argues that public funds alone cannot meet Africa's growing energy demands, which require an estimated $120 billion annual investment until 2040. It advocates for 'green financing'—blending public and private capital—to overcome high infrastructure costs and investment risks. Using Kenya's experience, the brief details how instruments like Partial Risk Guarantees, concessional loans, and Feed-in Tariffs have attracted private investment for wind, solar, and geothermal projects. It specifically recommends that the EU and development partners provide technical assistance and risk-mitigation products to create enabling environments for private sector energy investments across the continent.