Scale proven Risk-Sharing Instruments
On average, MDBs only crowd-in private finance of approximately 1.2 times the resources they commit themselves. In order to attract the volumes of private finance needed, MDBs need to expand their use of proven de-risking/risk-sharing instruments for climate projects.
2030 Goals
- Reduce the cost of capital of sustainable investments in EMDEs by addressing a range of perceived and real risks.
- Agreement by MDBs and major shareholders to work with OECD to pool and harmonize guarantee terms with data transparency.
- Commit to triple the quantum of guarantees (including MIGA) by 2025 globally from $70bn notional to $200bn, exploring auction mechanisms to maximize total capital mobilization.
StatusNo progress
No progress
- The World Bank Group, including MIGA and IFC, continues to expand its portfolio of risk insurance and credit guarantees to attract private sector investments in developing countries.
- Regional development banks, such as the African Development Bank (AfDB) are scaling up their guarantee offerings to mitigate risks.
Relevant Actors & Audiences
Private FIs
TCX, The Green Guarantee Company
Public FIs
NDBs, DFC, ECAs
Multilateral Development Banks
Asian Infrastructure Investment Bank (AIIB), MIGA, Inter-American Development Bank (IDB), International Finance Corporation (IFC)
Governments
Ministries of Finance
Leading Countries and Alliances
US, India, Brazil, Germany, UK, China
Milestones
The below events contain milestones related to Scaling Proven Risk-Sharing Instruments.
April
WBG/IMF Spring Meetings 2025
Milestones
Scale proven Risk-Sharing Instruments
Assessment and expansion of risk insurance and guarantee programs by MDBs
May
African Development Bank Annual Meeting 2025
Milestones
Scale proven Risk-Sharing Instruments
AfDB rolls out new regional guarantees to help mitigate risks in key sectors like energy and infrastructure, aiming to attract private sector capital into African markets.
Resources
The below resources all pertain to the topic of Scaling Risk-Sharing Instruments.
African Development Bank Guarantees
MDB Reform, Scale proven Risk-Sharing Instruments
Types of Guarantees
MIGA
MDB Reform, Scale proven Risk-Sharing Instruments
Multilateral Investment Guarantee Agency (MIGA)