Catalytic Finance (Copy)

The World Bank’s Climate Guarantee Facility (CGF) is a risk-mitigation mechanism designed to catalyze private investment into climate mitigation and adaptation projects in emerging markets and developing economies (EMDEs). The guarantee structure aims to unlock finance for projects that are technically sound and aligned with national climate goals but face barriers due to high perceived risk, uncertain regulatory environments, or limited credit histories. Objective To mobilize private capital at scale for climate action by de-risking investments in sectors critical for low-carbon and climate-resilient development — including renewable energy, sustainable transport, resilient agriculture, and water infrastructure. Structure and Mechanism The CGF provides partial credit and political risk guarantees that protect investors and lenders against: Default risk by public or private counterparties, Regulatory or policy reversals affecting project viability, Force majeure or climate-related disruption, and Currency inconvertibility or transfer restrictions. Guarantees can cover up to 50–80% of project exposure, depending on the risk profile and alignment with climate objectives. They are issued through the World Bank’s IDA and IBRD guarantee windows, often blended with concessional finance from trust funds such as the Climate Investment Funds (CIF), Green Climate Fund (GCF), or Global Environment Facility (GEF).

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Must be a bank in an EMDE

For more eligibility criteria, contact the Organisation at the details provided