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  2. Private Finance

Private Finance

The majority of financing for the climate transition will come from the private sector, but in many cases, private actors will need guidance, de-risking, and appropriate incentives from the global public sector to deliver at the necessary speed and scale. In particular, catalytic financial and policy mechanisms can help reduce the cost of capital where it is currently too high to achieve climate results.

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Related Resources

Publications and educational material to deepen understanding of Private Finance and related topics.

World Bank Group Guarantee Platform

Guarantees

The World Bank Group's guarantee platform consolidates its guarantee products and experts, enhancing efficiency, simplicity, and speed.

Scaling Up Green Guarantees: Recommendations by the Green Guarantee Group

Guarantees

The report produces actionable recommendations for policymakers and decisionmakers that will scale up the use and efficiency of guarantees for the green transition.

Approach Paper: Mobilizing Private Capital for Development Through World Bank Group Guarantees, Fiscal Years 2015–24: An Independent Evaluation

Guarantees

An independent evaluation regarding the relevance, coherence, and effectiveness of the Bank Group’s use of guarantees globally over the past decade.

Guarantees and insurance: Four instruments to unlock finance for clean energy in emerging markets

Guarantees

The blog explores how innovative guarantee and insurance instruments are making a difference for clean energy and energy efficiency projects in EMDEs, drawing on real-world examples and recent OECD research, and why they are still not used at scale.

Climate Transition Finance Handbook

Transition Finance

To help facilitate and accelerate the financing flows, this document seeks to provide clear guidance and common expectations on the practices, actions and disclosures to be made available by issuers when raising funds for their climate transition strategy.

Establishing Credibility and integrity in transition finance, Transition Finance Council

Transition Finance

This discussion paper aims to establish credibility and integrity in transition finance by defining voluntary high-level Guidelines to support the market. These build on the TFMR and aim to support a wide range of users, including policymakers, industry, and the financial sector.

Continuing progress: transitioning finance and financing the global transition to a resilient, net zero future

Transition Finance

CCFLA Project Preparation Action Group

Project Preparation and Business Development Facilities

The Project Preparation Action Group, supports CCFLA’s members in identifying, coordinating and accelerating existing Preparation Facilities (PPFs) for low-carbon and climate-resilient urban infrastructure projects.

CCFLA Project Preparation Glossary

Project Preparation and Business Development Facilities

This glossary defines terms commonly used by Project Preparation Facilities or to describe project preparation activities.

Project Preparation Facility, Green Climate Fund

Project Preparation and Business Development Facilities

The Green Climate Fund Project Preparation Facility (PPF) is a support mechanism that provides financial and technical assistance to help accredited entities prepare high‑quality climate project and programme proposals for GCF funding.

Project Preparation and Implementation Support Trust Fund, ADB

Project Preparation and Business Development Facilities

The Project Preparation and Implementation Support Trust Fund (PPISTF) is a single-donor trust fund established in 2022. It provides technical assistance (TA) grants for project preparation to both non-sovereign and sovereign operations.

Technical Assistance Hub

Project Preparation and Business Development Facilities

Technical assistance programs and global advocacy for stronger, sustainable finance.

CCFLA Project Preparation Resource Directory

Project Preparation and Business Development Facilities

It is a directory that helps subnational governments and stakeholders identify project preparation facilities that can support them in developing green and resilient infrastructure, more efficient heating and cooling systems, building renewable energy, setting up sustainable transit, or climate-proofing resilient infrastructure.

Project GAIA

Mobilizing Private Adaptation Investment

A multi-stakeholder climate and blended climate finance platform, supported by public and private sector organizations that offer long-term loans for climate adaptation and mitigation investments in 19 of the most climate-vulnerable countries in the world, making the funding accessible through sources previously unattainable to participating countries.

SCALE

Mobilizing Private Adaptation Investment

The SCALE project explores the launch of a new scalable climate finance platform to provide the full range of equity, credit, and technical assistance to private companies whose technology and solutions address the impacts of climate change globally. Building on the lessons learned from the first private investment fund for adaptation and climate resilience, Lightsmith will map climate resilience companies, engage investors and funders, and design systems for the new platform strategy.

UNFCCC Adaptation Private Sector Initiative (PSI)

Mobilizing Private Adaptation Investment

UNFCCC's Adaptation Private Sector Initiative (PSI) under the The Nairobi work programme: UNFCCC knowledge-to-action hub on adaptation and resilience, The Private Sector Initiative (PSI) aims to catalyze the involvement of the private sector in the wider adaptation community.

CPI report: Tracking and Mobilizing Private Sector Climate Adaptation Finance

Mobilizing Private Adaptation Investment

CPI Analysis finds the need to develop a taxonomy for tracking private sector finance in adaptation and build a machine learning model and dataset to support the expansion of its tracking.

Insurance Development Forum Disaster Risk Reduction Task Force

Shifting Insurance Models

The disaster risk reduction (DRR) Working Group has the main objectives of increasing focus on DRR as a complement to protection gap solutions to increase resilience of vulnerable communities, giving more visibility to the role of insurance in disaster risk reduction.

Closing the Gap: The emerging global agenda of transition plans and the need for insurance-specific guidance

Shifting Insurance Models

Insurance enables economic activity by protecting assets and de-risking investments in renewables, low-carbon technologies and climate-resilient infrastructure. Through underwriting, pricing, claims management and broker engagement, insurers can influence clients’ decarbonization pathways and signal risks to high-emitting activities.

Enhancing the insurance sector’s contribution to climate adaptation

Shifting Insurance Models

This paper examines the contribution of the insurance sector to climate adaptation. It outlines some of the challenges to assessing future climate risks, encouraging policyholder risk reduction and supporting resilient reinstatement.

Brazil hedging instrument

Mitigating Currency Risk

The document explains Brazil’s Foreign Private Capital Mobilization and Currency Hedging Program, which aims to attract foreign investment by improving macroeconomic stability and predictability. It is designed to support Brazil’s ecological transformation.

Global Financial Stability Report: Shifting Ground beneath the Calm

Mitigating Currency Risk

The report analyses risks in the global financial system, with a focus on FX markets and cross-border capital flows. It explains how foreign-currency debt, capital flow volatility, and liquidity stresses can increase exchange rate risks, and outlines policy measures such as stronger FX market oversight and development of local-currency markets, to enhance resilience against currency shocks.

EU Sustainable Finance Taxonomy

Taxonomies, Standardization, and Disclosure

What the EU is doing to create an EU-wide classification system for sustainable activities.

Indonesia Taxonomy for Sustainable Finance

Taxonomies, Standardization, and Disclosure

A national classification system for sustainable economic activities, guiding financial institutions and investors to channel capital toward environmentally and socially sustainable projects aligned with Indonesia’s development goals and net-zero transition.

ISSB issues inaugural global sustainability disclosure standards

Taxonomies, Standardization, and Disclosure

IFRS S1 and IFRS S2 issues by ISSB, ushering in a new era of sustainability-related disclosures in capital markets worldwide.

MDB Common Principles for tracking nature-positive finance

Taxonomies, Standardization, and Disclosure

This report establishes common principles for tracking nature-positive finance, improves comparability across MDBs, supports global biodiversity commitments, and guides consistent investment, reporting, and decision-making toward nature-positive outcomes.

Common Principles for Climate Mitigation Finance Tracking

Taxonomies, Standardization, and Disclosure

This report provides a credible, harmonized framework for tracking climate mitigation finance, supports Paris Agreement goals, improves transparency and consistency in reporting, and guides investments toward low-carbon activities.

GRI 102: Climate Change 2025 and GRI 103: Energy 2025 Standards

Taxonomies, Standardization, and Disclosure

It consists of updated Climate Change (GRI 102) and Energy (GRI 103) Standards, reflecting global best practices, enhancing transparency, and guiding organizations in reporting climate impacts.

Toolkits for Policy makers to green the financial system

Monetary Policy, Financial Regulation, and Supervision

The report guides policymakers, regulators, central banks, and supervisors on aligning financial systems with climate and sustainable development goals.

Guide for Supervisors Integrating climate-related and environmental risks into prudential supervision, Technical Document, NGFS

Monetary Policy, Financial Regulation, and Supervision

A guide to central banks and financial supervisors in integrating climate-related and environmental risks into supervision. It provides non-binding recommendations, best practices, and tools to help ensure financial system resilience while allowing flexibility across jurisdictions and supervisory mandates.

UN Principles for Responsible Banking, Principles for Responsible Investment, Principles for Sustainable Insurance

Monetary Policy, Financial Regulation, and Supervision

A global framework that helps banks align their strategies with sustainable development goals and the Paris Climate Agreement. It promotes responsible banking by guiding financial institutions to manage social and environmental impacts and contribute to a sustainable future.

OECD Center on Green Finance and Investment : A global platform for knowledge exchange between the private sector, government and regulatory institutions, academia, and civil society.

Monetary Policy, Financial Regulation, and Supervision

Data on finance and investment on environmental goals, climate goals, biodiversity, water and greening SME's.

Primer for climate related engagement with the IMF

Monetary Policy, Financial Regulation, and Supervision

The report seeks to empower low- and middle-income countries to use the Resilience and Sustainability facility more strategically by improving coordination across ministries and with development partners, to build macroeconomic policy frameworks that tackle climate change and long-term sustainability challenges.

Sustainable Stock Exchanges Initiative

Monetary Policy, Financial Regulation, and Supervision

A UN Partnership Program, whose aim is to support members in working with stakeholders including investors, issuers, regulators, supervisors, policymakers, and international organizations to enhance sustainable finance.