Meeting global climate and sustainability goals requires substantial investment
The Role of Development Finance Institutions in Accelerating the Mobilisation of Green Capital is a new Climate Bonds report, informed by expert interviews with European DFIs and associated organisations.
Estimates of the annual global climate investment gap vary between USD2.5tn and USD4tn.
This requires large-scale mobilisation of private capital to transition energy systems, build resilient infrastructure, and develop sustainable communities. This is particularly true for emerging markets (EM), where climate resilience and sustainable development are mutually reinforcing.
European DFIs have significant financing power. Assets of EU Member State public development banks were estimated at EUR3.2tn in 2020.
Climate Bonds’ new report, The Role of Development Finance Institutions in Accelerating the Mobilisation of Green Capital, provides an assessment of the status of capital mobilisation by European DFIs to support climate objectives. It sets out 30 key recommendations on how European DFIs, their shareholders, financial markets, and policy-makers can overcome the barriers to scale private capital mobilisation to address the global climate investment gap.