Private finance from a range of commercial actors in developed and developing countries is critical to closing the financing gap for investments in climate action, notably in clean energy systems, agriculture, forestry, land-use, adaptation and resilience. International public climate finance has an important role to play in mobilizing such private finance.
This report explores evidence-based action areas to increase and accelerate the mobilization of private finance for climate action in developing countries, and the role of international public finance providers in doing so. It draws on best-available data to provide disaggregated analysis of the sectoral, geographic and other features of private finance mobilized by public climate finance and presents key economy-wide, sector-specific, and institutional challenges to private finance mobilization.
The analysis is anchored in the context of the $100 billion climate finance goal, initially set for 2020 and extended to 2025, while also providing insights related to mobilizing private finance for climate action in developing countries more broadly.