Unlocking climate capital for emerging markets and developing economies: an adaptive regulatory and policy reform agenda

The transition to net zero cannot be won without a massive redirection of global capital towards emerging markets and developing economies (EMDEs) – encompassing both mitigation and adaptation finance. These countries face annual external financing needs in the order of US$1.3 trillion by 2035, yet international flows remain a fraction of that. This discussion paper sets out a comprehensive, sequenced and politically ambitious agenda of regulatory, policy and institutional reforms to help close that gap. The author outlines a set of reforms to overcome the impediments limiting the flow of climate finance into developing countries.