Mobilizing Private Capital for Climate-Driven Growth
Climate finance in emerging markets and developing economies
Addressing climate change can help to support the economic development and long-term growth in emerging markets and developing economies (EMDEs). EMDEs require trillions of dollars to address climate change, yet only a fraction of this funding is currently mobilized.
Developing nations face significant barriers to accessing climate finance, including inadequate technology, insufficient data, and structural challenges such as fragmented project pipelines, regulatory uncertainty, and weak financial markets. These obstacles deter private investment and slow progress.
The consequences of insufficient climate finance are far-reaching: EMDEs continue to struggle with weather-related disasters, poor air quality, food insecurity, and limited access to clean water and energy. These challenges contribute to weak rural development, poverty, poor health, inequality, and declining productivity — further hindering economic growth.
To address this gap, KPMG and the World Economic Forum (WEF) conducted a global study, ‘From Risk to Reward: Unlocking Private Capital for Climate Growth,’ with the intention of identifying practical strategies to help to scale private investment.
The report outlines six priority actions and sixteen strategies designed to reduce risk, improve project bankability, and enhance data transparency, aligning incentives for both public and private stakeholders.
These challenges set the stage for understanding the systemic shortfall in climate finance and the urgent need for innovative approaches. Scaling private climate capital in EMDEs should be acted on directly. This roadmap by KPMG and WEF highlights the necessary interventions, which can bridge the finance gap and help unlock development opportunities.
In this KPMG International summary document, we outline the key findings from the WEF white paper, ‘From Risk to Reward: Unlocking Private Capital for Climate Growth,’ and showcase how KPMG firms have supported clients globally in addressing climate finance challenges.
