Risk to Reward 2025

A recurring theme from both the survey and stakeholder interviews is the critical need for reliable, standardized and accessible data to support climate investment decisions in EMDEs. While this barrier is well-known and has been cited in previous climate finance literature, our study reaffirms its centrality through direct input from a broad range of private capital providers. Better data is needed to more accurately price investment risk and calibrate the cost of capital in EMDEs, as high costs hinder clean energy adoption where it is most critical.45 Most effective tools to mobilize private climate finance to EMDEs (% survey respondents) FIGURE 11 Better data and transparency Embed private capital mobilization in development finance Develop local markets and currency solutions More project prep/technical assistance country platforms Operationalization of Article 6 mechanisms and reducing regulatory uncertainty Expanding the role of export credit agencies (ECAs) to de-risk and co-finance climate investments Better coordination and regulatory alignment among finance institutions Clear standard definitions/classificationsStronger policy and regulatory frameworks132% 16% 11% 11% 5% 5% 5% 0% 0% Percentage of respondents2Operationalization of capital mobilization toolsInvestors put data quality and transparency ahead of all other capital mobilization tools Notes: 1. For example, Nationally Determined Contributions (NDCs), sectoral pathways, fiscal incentives, regulatory sandboxes. 2. Respondents were asked to rank the listed capital mobilization tools according to perceived effectiveness. The percentages reflect the share of respondents who identified each option as most effective. Total percentages do not sum to 100%, as participation in this question was optional. Source: KPMG analysis based on World Economic Forum survey.Increase data transparency and local market intelligencePRIORITY 2 From Risk to Reward: Unlocking Private Capital for Climate and Growth 25