Private Finance and Climate Investment Needs: An Analytical Framework

Chen Chen, Charlotte Gardes-Landolfini, Annapurna Mitra and Henk Jan Reinders

No 2026/175, IMF Working Papers from International Monetary Fund

Abstract: Achieving climate-related commitments and mitigating related risks to macroeconomic and financial stability require improving the conditions for private investment. Raising sufficient private finance is however challenging, particularly for emerging markets and developing economies. This paper develops an analytical framework to assess how reforms shape private climate finance. Key dimensions include macrostructural reforms to lower capital costs, measures to incentivise financing for climate-related investments, and blended financing that leverages public resources to attract private investment. To the extent the resulting externally-financed investments are resilience- and growth-enhancing, these can also support strengthening of the longer-term balance of payments position. Effective implementation may require international support, especially for developing economies

Keywords: Climate finance; macro-structural reforms; climate measures (search for similar items in EconPapers)
Pages: 45
Date: 2026-08-21
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=579037 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:2026/175

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().