The World Economic Forum recently unveiled a stakeholder‑specific roadmap in order to mobilize private climate finance at scale in emerging markets as well as developing economies (EMDEs). The research report, From Risk to Reward: Unlocking Private Capital for Climate and Growth, focuses on execution, outlining who “should do what to build bankable pipelines, improve data and market intelligence, mobilize local capital and standardize risk‑sharing, amid growing investor attention to climate resilience, credit risk and the cost and availability of capital.”
EMDEs require $2.4 trillion in climate finance annually by 2030, “including $1 trillion from primarily private international sources.”
Yet current flows remain “far below what is needed.”
EMDEs received $332 billion in 2023, with international private finance “at $36 billion, underscoring the urgency to turn ambition into investable projects.”
The research, developed to support policy‑makers, development finance institutions, investors and market participants, provides “a practical pathway to accelerate low‑carbon, climate‑resilient growth where it is needed most. Collective action can unlock green growth and sustainable prosperity.”
Laia Barbara, Head of Climate Strategy, World Economic Forum has said that climate finance in developing economies is “no longer just an environmental issue; it’s a systemic financial challenge that affects credit ratings, investor behaviour and long‑term growth.”
Barbara added that mobilizing private capital at scale “starts with clarity on who should do what.”
They also noted that public and private actors must now collaborate “more strategically, concentrating resources where they are most needed rather than duplicating efforts or inadvertently crowding out investment.”
The report identifies key priority areas that are said to now be backed by actionable steps for each stakeholder group:
- Build investable project pipelines through public-private alliances, innovation funds, demand aggregation and bankability support
- Increase data transparency and local market intelligence via national platforms and digital analytics to reduce perceived risk and diligence frictions
- Mobilize local capital with credit guarantees and local‑currency instruments to lower FX risk and the cost of capital
- Simplify risk‑sharing mechanisms – standardized blended‑finance structures, first‑loss capital and climate insurance – to crowd in larger private flows
- Strengthen policy and regulatory certainty by translating national commitments into predictable, investable roadmaps and country platforms
- Expand equity investment structures (for example through platform vehicles or catalytic equity) to unlock patient capital for long‑term, scalable projects
According to the update from WEF, mobilizing private climate finance at considerable scale in EMDEs requires a more holistic, systemic approach as well as “clear policy signals, scalable risk-sharing tools and strong local partnerships to bridge the global climate finance gap.”
Building investor confidence depends largely on a multistakeholder approach that is said to be rooted in more aligned incentives, trusted data, “enabling policies and patient capital.”
