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This report by the Climate Policy Initiative (CPI) examines the role of Vertical Climate and Environment Funds (VCEFs) in mobilizing private climate investment for emerging markets and developing economies (EMDEs). It identifies three strategic opportunities for VCEFs to increase their catalytic impact: implementing sequential financing to support projects from ideation to scale, increasing collaboration with the public development bank (PDB) ecosystem to reach local beneficiaries, and aligning funding with country-driven investment plans. The report emphasizes the need to address the high cost of capital in EMDEs to expand market depth and attract institutional investors.

This briefing by Zero Carbon Analytics examines how the US-Israel invasion of Iran on 28 February 2026 triggered an energy crisis that accelerated the transition to clean energy. It analyzes the outperformance of clean energy equity funds over oil and gas funds, shifts in investor sentiment regarding the necessity of natural gas, and the impact of regional cost-of-capital differences on renewable energy investments.

This executive summary by Ember outlines the financial requirements and risk factors associated with India's goal of achieving 500 GW of renewable energy capacity by 2030, emphasizing that the cost of capital is a primary determinant of whether this target is met.

This research paper proposes a Global Credit Guarantee Facility (GCGF) to reduce the high cost of capital for renewable energy projects in developing economies, outlining three funding scenarios and their potential impact on risk premia and credit ratings.

The Climate Policy Initiative (CPI) proposes the establishment of a Global Credit Guarantee Facility (GCGF) to reduce the cost of capital for renewable energy investments in emerging markets and developing economies (EMDEs). The facility would primarily mitigate credit risk—including sovereign, off-taker, and average foreign exchange risk—through partial guarantees, while transferring political and residual FX risks to existing institutions like MIGA and TCX.

This research paper by the Climate Policy Initiative (CPI) examines the disparity between solar energy potential and installed capacity in developing economies, attributing the gap to high costs of capital driven by sovereign and off-taker risks. The authors propose the establishment of a Global Credit Guarantee Facility (GCGF) to de-risk cross-border financing and lower risk premiums for renewable energy projects in Emerging Market & Development Economy (EMDE) countries.

This report by the NewClimate Institute analyzes how public derisking instruments can reduce the cost of capital and levelized cost of electricity (LCOE) for utility-scale wind and solar PV projects in Tunisia to help meet the targets of the Tunisian Solar Plan (TSP).

This executive summary explores the potential for a government-sponsored foreign exchange (FX) hedging facility to reduce the cost of renewable energy in India. It argues that high market-based currency hedging costs currently make foreign debt nearly as expensive as domestic debt, hindering the achievement of 2022 renewable energy targets. The document analyzes a proposed facility that would cover debt payments for USD loans, estimating its expected cost and the potential reductions in government support and energy costs.

This conceptual review by the Stockholm Environment Institute examines the role of risk and the cost of capital in utility-scale renewable energy investments, with a specific focus on Sub-Saharan Africa. It analyzes how risk mitigation and transfer (RMT) instruments can be used to lower the Weighted Average Cost of Capital (WACC) and improve the Net Present Value (NPV) of projects to attract private investment in developing countries.