How to use

• Filter instruments by sector (e.g., energy, industry, or waste), risks addressed (credit, liquidity, market), and debt impact (direct, indirect).
• Browse instruments: Click on an instrument card to view a summary of the financial tool.
• Deep dive on the details: Download full technical sheets for more detailed analysis, case studies, structuring advice, and deployment examples.
• Apply to country context: Use these insights to shortlist feasible instruments aligned with your country’s fiscal and institutional context.
• Full details on all 14 instruments are available here

Considerations for entry points

• Not all instruments are universally applicable; use the filters to match tools to specific institutional and fiscal capacities.
• These filters are not strictly binary. Some instruments may span multiple categories, but for clarity, instruments have been classified under the most representative category based on available data.
• Some instruments will require partnerships with domestic financial institutions, donors, MDBs, or technical assistance to be viable (i.e., first-loss facilities).

What this toolkit does not do

• It is not a full structuring manual.
• It does not replace technical or legal structuring advice.
• It does not recommend country-specific instruments.
• It does not cover procurement or project pipeline design.

• Commercial providers: Commercial banks, financial institutions, institutional investors, and other actors providing commercially viable instrument types (e.g., market rate).


• Concessional providers: MDBs, DFIs, philanthropic organizations, and other actors providing concessional instrument types (e.g., below market rate or blended facilities) or credit enhancement to catalyze private investment.


• Debt impact
• Direct debt impact: Directly increasing or reducing sovereign debt.
• Indirect debt impact: Indirectly impacting sovereign debt, e.g., by enhancing country creditworthiness, lowering future borrowing costs, crowding in private capital, or broadening fiscal space.


• Debt sustainability: A government’s ability to meet current and future debt obligations without compromising fiscal stability.


• Emerging markets: Markets which may be characterized by improving liquidity, growing financial sectors, growing presence of local investors/lenders, partial frameworks or transparency and moderate project pipelines.


• Financial market readiness: Measure of market maturity with implications for instrument adoption pathways. This toolkit uses a typology of shallow, emerging, and mature markets.


• Internal capacity requirements.: Requirements (e.g., analytical, operational, or administrative capacity and technical expertise) for MOFs/users to implement instruments, including minimum requirements for basic implementation, advanced requirements for robust implementation, and pathways for building capacity.


• Mature markets: Markets which may be characterized by strong liquidity, deep and diversified financial sectors, strong local investor/lender presence, well-developed local financial institutions, strong project pipeline and high capacity for structuring and verification, secondary markets exist.


• Pricing considerations: Factors affecting costs associated with instruments, including drivers of cost, investor return expectations, risk profile, and the role of concessional support in reducing costs.


• Regulatory capacity requirements: Requirements (e.g., legal, budgetary, or political capacity) for MOFs/users to oversee instruments, including minimum requirements for basic oversight, advanced requirements for robust oversight, and pathways for building capacity.


• Risks addressed
• Credit risk: The risk of borrower default or the inability to repay debt obligation, e.g., political risk, investment performance risk, physical climate risks, counterparty risk.
• Liquidity: The risk of being unable to meet near-term debt obligation, i.e., inability to access capital when needed (e.g., due to delays in donor disbursement after a disaster).
• Market risk: The risk of nonpayment resulting from market effects, e.g., interest rate risk, currency risk due to volatility in exchange rates, interest rates, or asset prices, depreciation after climate disasters impacting FX reserves.


• Shallow markets: Markets which may be characterized by low liquidity, limited or no secondary market activity, limited capital markets, donor dependence, few local investors/lenders, high transaction costs and limited experience with green/climate finance instruments.


• Technical assistance providers: Providers supporting instrument structuring and design, funding studies/pilots, or advising instrument implementation.