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.
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. The report builds on workshops “Regional Program on Mainstreaming Climate Finance Actions in National DFIs” the ICR Facility
organized jointly with AADFI and the discussions held with DFIs during the trainings. The trainings are part of the ICR Facility’s 2nd
component which supports national and sub-regional development finance institutions (DFIs). The article also adds to the ICR
Facility’s series on climate smart investments (CSI) which targets government and public agencies, practitioners and private sector
representatives besides DFIs.