The scarcity and high cost of financing remain major obstacles to developing countries’ investment in infrastructure, industrialization, energy transition, and climate adaptation. Mobilizing resources requires new financial solutions, greater private sector participation, and institutions better aligned with the needs of Global South countries.
The session will discuss development banks, climate funds, guarantees, blended finance, sustainable bonds, and mechanisms for reducing currency and political risk. It will also examine proposals for making international financial architecture more inclusive, predictable, and conducive to sustainable development.
- What financial instruments — such as blended finance, guarantees, and sustainable bonds — have proven most effective in reducing the cost of capital and attracting private investment for infrastructure and energy transition projects in developing countries?
- What role can development banks and climate funds play in mitigating currency and political risks, and how can their actions be better coordinated to increase the volume and predictability of resources available to Global South emerging markets?
- What strategies and success stories from subnational governments in developing countries can be highlighted in attracting sustainable investment, and how can these local initiatives be more coherently aligned with international development institutions and development banks?