Historically, development finance institutions (DFIs) and large financial institutions were the main investors providing catalytic capital to help bridge emerging market infrastructure financing gaps. But now, diverse non-DFI providers are exploring ways to support the need for climate infrastructure financing. Their explorations have been valuable but fragmented, resulting in promising pilots and one-off transactions that have not yet been consistently duplicated or expanded into larger scale. As a result, there are still significant unmet needs in the market.

Given the limited resources and even more limited catalytic capital, there is a pressing need for catalytic capital providers to transition from isolated pilot projects to a systematic roadmap for addressing the vast challenges ahead.

2023-09-11-Catalytic Capital Final

catalytic capital, infrastructure, climate mitigation, blended finance

Catalytic Capital: A Key to Aligning Infrastructure Investments with Climate Mitigation in Emerging Markets

Global Impact Investing Network (GIIN)