Foreword Developing countries stand at the frontlines of the climate crisis. They are simultaneously the most vulnerable to climate shocks and among the least equipped financially to respond. Rising climate risks threaten hard-won development gains, straining fiscal space and increasing the cost of borrowing. At the same time, global climate finance flows remain far below what is needed, with adaptation finance in particular lagging behind, leaving many communities without the resources to build resilience. Yet the story is not only one of challenge – it is also one of opportunity. Emerging markets and developing economies are home to dynamic populations, abundant natural resources and rapidly growing clean technology sectors. If adequately financed, these countries can become hubs of innovation and drivers of the global transition to a low-carbon, climate-resilient economy. Unlocking this potential will require urgent and transformative action to mobilize both domestic and international private capital. The barriers are well known: insufficient support for the preparation of investable projects and inadequate matchmaking between project supply and investor demand, limited financial market development, heightened political and foreign exchange risks and the high cost of capital. Overcoming them will demand more than incremental fixes. It calls for bold partnerships between governments, multilateral development banks, development finance institutions and the private sector. This report highlights practical pathways forward to mobilize private capital from both domestic and international lenders and investors. It identifies priority areas for reform and lays out concrete actions that can help unlock private climate finance at scale. Importantly, it reflects the perspectives of a diverse range of stakeholders – from policy-makers to investors – who are actively seeking solutions that balance risk and return while delivering real impact. The choices we make in the coming years will shape whether developing countries are left behind in the global climate transition or positioned as leaders of a more sustainable future. By working together to channel finance where it is needed most, we can turn today’s climate crisis into tomorrow’s opportunity for resilient, inclusive growth.Mahmoud Mohieldin United Nations Special Envoy, Financing the 2030 Agenda for Sustainable DevelopmentSebastian Buckup Managing Director, World Economic Forum From Risk to Reward: Unlocking Private Capital for Climate and GrowthNovember 2025 From Risk to Reward: Unlocking Private Capital for Climate and Growth 3

Risk to Reward 2025