Supporting policymaking to mobilize private climate finance
Public- and private-sector engagement can strengthen investment conditions in emerging markets.
The recovery from COVID-19 provides a powerful opportunity to accelerate investment in the transition to low-carbon economies in emerging markets. Public and private sector engagement, creating investment-friendly business environments, and building pipelines of bankable sustainable infrastructure opportunities are all important to realize this promise and mobilize private finance. Public finance institutions are actively engaged with policymakers on policy adjustments to attract greater private climate finance. However, a clear and unified private finance voice has been absent from the conversation.
The CFLI—along with the Association of European Development Finance Institutions (EDFI) and the Global Infrastructure Facility (GIF)—set out to raise the profile of enabling environment priorities and convened an industry-led effort.
The recovery from COVID-19 provides a powerful opportunity to accelerate investment in the transition to low-carbon economies in emerging markets. Public and private sector engagement, creating investment-friendly business environments, and building pipelines of bankable sustainable infrastructure opportunities are all important to realize this promise and mobilize private finance. Public finance institutions are actively engaged with policymakers on policy adjustments to attract greater private climate finance. However, a clear and unified private finance voice has been absent from the conversation.
The CFLI—along with the Association of European Development Finance Institutions (EDFI) and the Global Infrastructure Facility (GIF)—set out to raise the profile of enabling environment priorities and convened an industry-led effort.
Private Sector Considerations for Policymakers
The CFLI—in partnership with the EDFI and the GIF—is pleased to present our newest report: Unlocking Private Climate Finance in Emerging Markets: Private Sector Considerations for Policymakers.
Based on the experience of private sector lenders, banks, and investors that have deployed billions in sustainable infrastructure across high-income and emerging economies over the past decade, this report puts forward a broad menu of potential policy-change opportunities that governments in emerging markets can advance to strengthen enabling environments to unlock private climate finance.
The Policy Considerations presented here focus both on broad, cross-cutting enabling environment factors, as well as on sector-specific factors in clean energy systems, sustainable urban transport, climate-smart water and waste, green buildings and streetlighting, and sustainable land use.
These Policy Considerations highlight key factors that have the potential to:
- Catalyze new private climate finance at scale
- Improve cost and speed of negotiations between parties on investments
- Address areas where market- and sector-specific guidance is fragmented
- Align with current global and national policy priorities to accelerate transition to a low-carbon economy
The CFLI—in partnership with the EDFI and the GIF—is pleased to present our newest report: Unlocking Private Climate Finance in Emerging Markets: Private Sector Considerations for Policymakers.
Based on the experience of private sector lenders, banks, and investors that have deployed billions in sustainable infrastructure across high-income and emerging economies over the past decade, this report puts forward a broad menu of potential policy-change opportunities that governments in emerging markets can advance to strengthen enabling environments to unlock private climate finance.
The Policy Considerations presented here focus both on broad, cross-cutting enabling environment factors, as well as on sector-specific factors in clean energy systems, sustainable urban transport, climate-smart water and waste, green buildings and streetlighting, and sustainable land use.
These Policy Considerations highlight key factors that have the potential to:
- Catalyze new private climate finance at scale
- Improve cost and speed of negotiations between parties on investments
- Address areas where market- and sector-specific guidance is fragmented
- Align with current global and national policy priorities to accelerate transition to a low-carbon economy