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This report outlines strategies for scaling investment in Nature-based Solutions (NbS) through blended finance, highlighting the critical role of the public sector in providing technical assistance and concessional capital. It identifies guarantees as highly catalytic tools for de-risking private investment and emphasizes the need for ecosystem building and the creation of new revenue streams via beneficiary engagement and regulated markets (e.g., carbon and blue markets) to prove commercial viability.

This guide by the World Resources Institute explains the concept of 'de-risking' to bridge the investment gap for low-carbon infrastructure in emerging markets and developing countries. It details how public capital can be used strategically through policy and financial mechanisms to reduce perceived risks, thereby attracting private investment for climate-smart projects.

This research paper by the Climate Policy Initiative, produced in collaboration with PT Sarana Multi Infrastruktur (Persero), examines the potential for a guarantee instrument to attract private capital for renewable energy in Indonesia. It identifies a significant investment gap and explores how credit guarantees can mitigate specific risks to help the country reach its 2025 clean energy targets.

This report by the International Institute for Sustainable Development (IISD) examines the role of credit enhancement in scaling up sustainable infrastructure, particularly in developing countries. It defines credit enhancement as the transfer of project risk to creditworthy third parties to improve financial feasibility. The document identifies supply-side barriers, such as the conservative risk management and incentive structures of multilateral development banks, and demand-side challenges, including low awareness among policy-makers. It concludes that while a Universal Guarantee Facility is being discussed, empowering existing de-risking agencies and increasing domestic investor participation may be more effective strategies.

This synthesis paper by the Climate Policy Initiative proposes a systems thinking approach to optimize international public climate finance. It identifies systemic barriers in developing countries—such as short-termism in banking and capital volatility—and argues that international public actors must shift from a project-finance focus to a financial system development focus to effectively leverage private capital and meet Nationally Determined Contributions (NDCs).

This research paper by the World Resources Institute examines how Multilateral Development Banks (MDBs) can utilize de-risking mechanisms to mobilize private capital for low-carbon and climate-resilient development in developing countries. It analyzes the barriers to scaling these instruments and proposes strategies to enhance MDBs' roles as 'mobilizers' to close the climate investment gap.