Mobilising institutional investor capital for climate-aligned development
Financing from institutional investors will be critical to achieving the sustainable
development goals and curbing climate change. However, these large investors have
been largely absent from multilateral initiatives to mobilise private capital. Partly
as a result, such initiatives have been unable to reach the scale required for development
finance to go “from billions to trillions”. Successful mobilisation of private capital
– including from institutional investors – has instead frequently taken place at the
local level, by strategic investment funds and some green banks. At the same time,
some institutional investors have been changing their modus operandi, from an intermediary
to a collaborative model, and are re-localising their operations. The elimination
of financial intermediaries with a short-term focus removes a bottleneck between two
categories of long-term investors – institutional investors and multilateral finance
institutions. That opens new opportunities for collaboration, as discussed in this
paper.
Published on January 08, 2021
In series:OECD Development Policy Papersview more titles