Guarantees mobilized 23% of all private finance mobilized by developed country public finance between 2020 and 2023, and were among the preferred de-risking, or risk-sharing, tools for private investors. They have strong potential to mobilize more financing than loans for climate finance.
Increase the use of guarantees by MDBs and DFIs to mobilize greater climate finance, leveraging their effectiveness as a preferred de-risking instrument for the private sector and their historically low default rates.
Adjust Official Development Assistance (ODA) accounting rules to view guarantees as fundamentally different than loans, supporting increased use.
Moderate Progress
In 2024, the World Bank announced its new guarantee platform , designed to drastically increase the ease & use of guarantee products across its institutions. In 2025, the platform enabled the first-ever combination of an IBRD Policy-Based Guarantee (PBG) and a MIGA guarantee, which is set to support Côte d’Ivoire’s €433.3 million (approximately $505 million) inaugural Sustainability Linked Loan (SLL). Further, issued a record USD 9.5 billion in new guarantees across 44 projects in FY 2025, including guarantees for 25 projects (representing 57 percent of the total projects) towards climate finance initiatives.
The Green Guarantees Group, a network that brings together governments, multilateral development banks, private sector, civil society, and ecosystem partners to develop actionable recommendations for policymakers and decision-makers, with a focus on mobilizing private capital for emerging markets and developing economies (EMDEs), launched in 2024 with significant membership. At COP30, it further launched the GGG Guarantee Directory, which is the first publicly accessible, centralized database of green and climate-aligned guarantee instruments offered by public and private institutions worldwide.
Many EMDE banks have expressed an interest in increasing the use of guarantees from MDBs and other international sources, simplifying the implementation process, and supplying guarantees directly to MSMEs.
At COP30, the International Development Finance Club (IDFC), Finance in Common (FiCS) and the NDC Partnership, in collaboration with the Multilateral Investment Guarantee Agency (MIGA), announced the Public Development Bank Guarantee Hub — the "PDB Guarantee Hub" — a new initiative to unlock private capital for climate and development priorities. The PDB Guarantee Hub will expand private investment in emerging and developing economies by building guarantee capacity for public development banks (PDBs) at both regional and national levels.
Cooperation is required between these actors and audiences to drive progress foward in Guarantees.
Showcasing the key reform milestones for Guarantees that have been addressed at global events.
Washington DC, US
Discussions should focus on scaling credible, harmonized frameworks for emissions accounting and transition finance, leveraging initiatives like the ISO–GHG Protocol partnership to simplify compliance and improve comparability.
Discussions should focus on scaling local-currency and FX risk-mitigation instruments to unlock private finance for EMDE infrastructure and climate projects. MDBs and DFIs should explore how blended finance, FX liquidity facilities, and derivatives programmes can reduce currency risk, support sustainable domestic capital markets, and align investments with national development priorities.
Washington, DC
1.Highlighted that climate finance and economic stability are interwined priorities 2. Discussions held around the need to build smarter prudential regulation alongside public finance instruments that can better absorb risk and crowd in private investment. 3. African and Latin American finance ministers also called for stronger representation in global financial governance.
A Knowledge Cafe' on the theme of Scaling Local Financing to close Infrastructure deficits highlighted the issue of rising foreign exchange risk in infrastructure financing for EMDEs. It involved sharing of insights from WBG knowledge/ country programs and international private investors to decode proven pathways and interventions to stimulate an action-oriented dialogue on local infrastructure financing solutions.
Publications and educational material to deepen understanding of Guarantees.
The World Bank Group's guarantee platform consolidates its guarantee products and experts, enhancing efficiency, simplicity, and speed.
The report produces actionable recommendations for policymakers and decisionmakers that will scale up the use and efficiency of guarantees for the green transition.
An independent evaluation regarding the relevance, coherence, and effectiveness of the Bank Group’s use of guarantees globally over the past decade.
The blog explores how innovative guarantee and insurance instruments are making a difference for clean energy and energy efficiency projects in EMDEs, drawing on real-world examples and recent OECD research, and why they are still not used at scale.
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