Closing the Funding Gap: The Case for ESG Incorporation in Emerging Markets

Year Published

2022

Contributing Organizations

Principles for Responsible Investment (PRI)

Type of Resource

Research/Insights Report

Languages

English

Spanish

Relevant Topics

Core Topic

Climate Finance Ecosystem

Topic 2

Risks & Opportunities: The Business Case

Target Audience

Asset Managers

Asset Owners

MDBs/DFIs

Relevant Geography

Africa

Middle East and North Africa

Asia & the Pacific

Central Asia

Latin America and the Caribbean

Resource Description

This report explores how to scale institutional investment in emerging markets by addressing key barriers and offering solutions across policy, finance, and market structures.

Why This Matters

Emerging markets face a major climate investment gap. Mobilizing institutional capital is essential to meet climate and development goals.

Key Insights

Highlights risks and barriers such as currency volatility, policy uncertainty, and insufficient pipelines of investable projects
Emphasizes the role of blended finance, guarantees, and public-private collaboration to de-risk investments
Calls for improved data transparency, standardized taxonomies, and local capacity building
Identifies actions for institutional investors, including policy engagement, pipeline development, and use of transition finance tools
Stresses that enabling environments—such as credible net-zero roadmaps and investment-grade regulatory frameworks—are critical to unlocking capital

Secondary File Resources

Secondary Resource Link(s)

Webpage with an Executive Summary

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