Mobilising private capital for climate action and growth in the Global South

Published on July 13, 2023
Hans Peter Lankes, Nick Robins

This briefing outlines the opportunities for the G20 to provide momentum to further the agenda of mobilising private sources for climate action.

It has long been clear that delivering on the Sustainable Development Goals (SDGs) and global climate goals at the necessary scale requires a large step-up in financing from private sources. Yet, despite many promising ideas, success has been modest so far. Based on consultations with official agencies and market players, this Policy Brief reviews the reasons for the disappointing performance to date and proposes measures that the G20 could promote to unblock private capital flows. It concludes that there needs to be action in five areas: reforming regulatory frameworks; improving business environments; market and project creation; blended finance; and financing channels. The G20 under India’s leadership could provide momentum by helping to consolidate and boost earlier initiatives; reviewing global financial regulation to remove unintended barriers to Emerging markets and developing economies (EMDE) flows; and laying the groundwork for a Global Investment Recovery Act (G-IRA) which includes extending tax benefits to sustainable investments in EMDEs.