Search Climate Insights Directory

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 report by the Climate Policy Initiative and the Glasgow Financial Alliance for Net Zero examines the critical role of equity and catalytic equity in closing the clean energy investment gap in emerging markets and developing economies (EMDEs) to reach net zero goals by 2035.

The 'Global Landscape of Climate Finance 2025: EMDE Spotlight' fact sheet analyzes climate finance flows to emerging markets and developing economies (EMDEs). It reports that while total climate finance to these 157 countries surpassed USD 1 trillion in 2023, there remains a significant gap compared to the estimated USD 4 trillion required annually by 2030. The document highlights the dominance of China in overall flows, the growth of domestic private financing in emerging markets, and the persistent underfunding of adaptation and hard-to-abate sectors.

This report by the Green Guarantee Group (GGG) provides a roadmap to scale the use of green guarantees to mobilize private capital for climate action in emerging markets and developing economies (EMDEs). It identifies systemic barriers—including regulatory constraints under the Basel Framework, currency risks, and data gaps—and proposes four primary recommendations to optimize guarantees as a catalytic investment tool to help meet global climate finance targets.

This executive summary from the Climate Policy Initiative (CPI) details the expanded tracking of climate commitments across 170 public development banks (PDBs) between 2015 and 2024. The report finds that climate ambition among these institutions is plateauing and remains insufficient to address the global climate finance gap, with fewer than half of the tracked banks pledging full alignment with the Paris Agreement.

This report, prepared by an Independent High-Level Expert Group (IHLEG) for the Brazilian G20 Presidency and the G20 Sustainable Finance Working Group, reviews the operations of the Vertical Climate and Environmental Funds (VCEFs)—the Global Environment Facility (GEF), the Adaptation Fund (AF), the Climate Investment Funds (CIF), and the Green Climate Fund (GCF). The review identifies a fragmented global climate finance landscape and recommends a 'process integration' approach to enhance the Funds' collective impact. Key proposals include harmonizing accreditation and reporting, shifting from individual projects to country-driven investment platforms, and expanding the use of diverse financial instruments to mobilize more private and public capital for emerging markets and developing economies (EMDEs) and least-developed countries (LDCs).

This executive summary outlines how international development finance institutions (DFIs) and multilateral development banks (MDBs) can better collaborate with national development banks (NDBs) in emerging markets and developing economies (EMDEs) to increase adaptation finance flows. It identifies systemic barriers to cooperation and proposes five strategic recommendations to align international finance with national adaptation needs.

The Climate Policy Initiative (CPI) conducted a scoping analysis of cross-border guarantee instruments to understand their role in mobilizing private climate finance for emerging markets and developing economies (EMDEs). The study identified 52 instruments from 34 entities, finding that while guarantees are powerful tools for leveraging finance, the current landscape is fragmented, predominantly focused on debt and commercial risks, and lacks a strong emphasis on climate-exclusive mandates.

This report by the Climate Policy Initiative (CPI) updates the tracking of climate commitments for the 70 largest public financial institutions (PFIs) for 2023 and analyzes the climate strategies of 49 smaller PFIs in emerging markets and developing economies (EMDEs). The findings indicate minimal progress among large PFIs, while smaller institutions often demonstrate higher ambition when supported by their national governments.

This report by the Climate Policy Initiative (CPI) proposes an innovative operational model for International Financial Institutions (IFIs), specifically Multilateral Development Banks (MDBs), to increase the scale and quality of climate finance for Emerging Markets and Developing Economies (EMDEs). It advocates for a shift from project-by-project funding to national sectoral platforms, the large-scale use of risk-sharing instruments to catalyze private capital, and a comprehensive business model overhaul including an 'originate-to-distribute' approach to optimize balance sheets.