Emerging markets and developing economies are central to the global energy transition, yet receive just 15% of clean energy investment today. While private investors could finance up to $1.3 trillion annually by 2035, much of this capital will not flow without better risk-sharing.
Current approaches to development and catalytic finance are not delivering – mobilising just $1 of private investment for every $2 of public finance, and implying nearly $1 trillion in annual public finance needs, an unachievable level.
This report sets out how MDBs, DFIs and donors can shift towards a more catalytic approach – using instruments that better reduce and share risk – to unlock private investment at scale and significantly reduce the amount of public finance required.
