National DFIs: Critical allies for climate action Why and how can they be more involved in climate finance?
ICReport in the series on Innovative Finances
National development finance institutions (NDFIs) can play a vital role in promoting climate financing and thus achieving Nationally Determined Contributions (NDCs) due to their knowledge of local markets, their close connections to domestic public and private stakeholders and their ability for local currency financing. However, currently NDFIs are not involved as intensively in this field as they could be. This report discusses and recommends how national development finance institutions could play a greater role in climate financing, how they could be best supported by the ICR Facility and others to do so.