Staff Climate Notes

Mobilizing Private Climate Financing in Emerging Market and Developing Economies

Author/Editor:

Ananthakrishnan Prasad ; Elena Loukoianova ; Alan Xiaochen Feng ; William Oman

Publication Date:

July 27, 2022

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

Global investment to achieve the Paris Agreement’s temperature and adaptation goals requires immediate actions—first and foremost—on climate policies. Policies should be accompanied by commensurate financing flows to close the large financing gap globally, and in emerging market and developing economies (EMDEs) in particular. This note discusses potential ways to mobilize domestic and foreign private sector capital in climate finance, as a complement to climate-related policies, by mitigating relevant risks and constraints through public-private partnerships involving multilateral, regional, and national development banks. It also overviews the role the IMF can play in the process.

Series:

Staff Climate Note No 2022/007

Subject:

Climate change Climate finance Economic sectors Environment Financial crises Non-renewable resources Public sector

Frequency:

occasional