This document maps the types of financial instruments used by various development financial institutions, export credit agencies, and climate funds to support their operations. It can serve as a useful reference for public sector decision-makers evaluating the broad toolkit of options available to support private sector climate change mitigation and adaptation projects in developing countries.
Public Financing Instruments to Leverage Private Capital for Climate-Relevant Investment: Focus on Multilateral Agencies is part of WRI’s Climate Finance series, which tackles a broad range of issues relevant to public contributors, intermediaries, and recipients of climate finance—that is, financial flows to mitigate greenhouse gas emissions and adapt to climate change impacts. A subset of this series examines how different types of public climate finance providers and intermediaries--or international finance entities like the proposed Green Climate Fund--can meet the significant investment needs of developing countries by mobilizing private sector investment. This subset focuses on how the public sector can finance and mobilize private sector investment and acknowledges the importance of overarching support for complementary climate change policies that create attractive market conditions domestically.