The Role of National Development Banks in Catalyzing International Climate Finance

Peer Reviewed icon Peer Reviewed
Date issued
Mar 2013
Subject
Financial Service;
Financial Risk;
Financial Policy;
Climate Change
JEL code
G20 - Financial Institutions and Services: General;
G21 - Banks • Depository Institutions • Micro Finance Institutions • Mortgages
Category
Monographs
Significant investments are needed to support the global transition to a low-carbon, climate resilient future. Current finance flows fall short of global financing needs, and massive scaling up is needed to unlock additional financial resources and foster a sustainable investment pathway. Overcoming barriers to private sector investments is critical, and international climate finance can play a catalytic role in this regard. National development banks (NDBs) have a unique role in this context, both complementing and catalyzing private sector players. This publication discusses the unique role that NDBs could play in scaling up private financing for climate change mitigation projects through the intermediation of international and national public climate finance in their respective local credit markets and the conditions that would be needed for them to be most effective. It draws from experiences in international climate finance and best practices, processes, and products of NDBs within the Latin American and Caribbean region.