According to a 2023 IMF report, MDBs only crowd-in private finance of approximately 1.2 times the resources they commit themselves. In order to attract the volumes of private finance needed, MDBs need to expand their use of proven de-risking/risk-sharing instruments for climate projects.
Reduce the cost of capital of sustainable investments in EMDEs by addressing a range of perceived and real risks.
Agreement by MDBs and major shareholders to work with OECD to pool and harmonize guarantee terms with data transparency.
Commit to triple the quantum of guarantees (including MIGA) by 2025 globally from $70bn notional to $200bn, exploring auction mechanisms to maximize total capital mobilization.
No Progress
The World Bank Group, including MIGA and IFC, continues to expand its portfolio of risk insurance and credit guarantees to attract private sector investments in developing countries.
Regional development banks, such as the African Development Bank (AfDB) are scaling up their guarantee offerings to mitigate risks.
Cooperation is required between these actors and audiences to drive progress foward in Scale proven Risk-Sharing Instruments.
Showcasing the key reform milestones for Scale proven Risk-Sharing Instruments that have been addressed at global events.
Washington DC, US
MDBS, credit rating agencies, and relevant CSOs discuss strategies to align credit rating methodologies with climate and development priorities, improving recognition of MDB-backed projects and reducing the cost of capital for EMDEs.
MDBs agree to explore ways to expand MDBs’ risk-taking capacity to support higher-impact climate, infrastructure, and just transition investments while maintaining financial sustainability.
Moderate Progress
Moderate Progress
Moderate Progress
No Progress
No Progress
No Progress
Moderate Progress