海外发展研究所-国家开发银行：为净零世界建立市场（英）

PolicybriefNationalDevelopmentBanks:buildingmarketsforanet-zeroworldPrioritiesfortheG20SamanthaAttridge,BiancaGetzeland

ArchieGilmourJuly

2023ODI

PolicybriefReaders

areencouragedto

reproducematerialfortheirownpublications,aslongasthey

arenotbeingsoldcommercially.ODIrequests

dueacknowledgementandacopyofthe

publication.For

onlineuse,

weask

readersto

linkto

theoriginalresourceon

theODIwebsite.Theviewspresentedinthispaperarethoseof

theauthor(s)anddonot

necessarilyrepresenttheviewsof

ODIor

ourpartners.ThisworkislicensedunderCCBY-NC-ND4.0.Howtocite:Attridge,S.,Getzel,B.

andGilmour,A.

NationalDevelopmentBanks:an

untappedopportunity

to

mobilisethe

privatecapital

andbuildthe

marketsneededforanet-zeroworld.PolicyBrief.London:ODI(/en/publications/national-development-banks-building-markets-for-a-net-zero-world/)2ODI

PolicybriefAcknowledgementsTheauthorswouldliketothankthe

peerreviewersfortheirveryhelpfulcritiqueand

comments:

NehaKumar,LilyBurge

(ClimateBonds

Initiative),NamitaVikas,

SudhaMeiyappan

(auctusESG)andLorenaGonzalez(ODI).Ourthanksto

PTSMIcolleaguesforgenerouslyengagingintheresearchandprovidingcomments

and

data.Theauthorsgratefullyacknowledgethe

generousfinancialsupport

oftheCIFF.Theviewsexpressedarethoseof

theauthorsand

do

notreflectthose

of

the

funder,

ODIorthe

institutions

analysedinthispaper.AbouttheauthorsSamanthaAttridge

is

aSeniorResearchFellowatODI.Shespecialisesinblendedfinance,

nationaldevelopmentbank(NDB)andDFIinvestment.Shehasdeepunderstandingandknowledgeintheuseofdevelopmentfundsto

de-riskprivateinvestmenttomobiliseprivatefinance,

andthestrategies,operationsandimpactmeasurementandmanagementof

NDBand

DFIinvestment.Between2009and2016,shewas

HeadofDevelopmentFinanceattheCommonwealth.Priortothatshewas

DeputyDirectorofSovereignDebtManagementand

Capital

MarketDevelopmentconsultancyatCrownAgents.

SheholdsaMaster’sdegreeinDevelopmentEconomicsfrom

the

SchoolofOrientalandAfricanStudies

(SOAS).

She

is

alsoaCharteredAccountant(ACA)withtheInstituteofCharteredAccountantsinEnglandand

Wales(ICAEW)andqualifiedwithPricewaterhouseCoopers.BiancaGetzel

is

aResearchOfficerat

ODI.

Herresearchandadvisoryworkfocuses

on

privatesector

mobilisationinthe

contextofmultilateraland

nationaldevelopment

banks,aswellas

developmentfinance

institutions.PriortojoiningODI,Bianca

workedattheWorldBank’sInternationalFinanceCorporation(IFC)andTCX.BiancaholdsaMaster’sdegreeinDevelopmentEconomics

fromtheJohnsHopkinsSchool

ofAdvancedInternationalStudies

(SAIS).ArchieGilmourisaSeniorResearchOfficer

atODI.

Heworksonenergy

transitionsandclimatefinance,aswellasotherclimate-relatedsubjects

including

lossand

damage.HegainedaMaster’sinEnvironmentalTechnologyfrom

ImperialCollegeLondonafterworkinginthehumanitariansector

intheMiddleEast.3ODI

PolicybriefContents12Introduction..........................................................................................6Transformingenergysystems–the

financialchallenge

.......................8Challengesto

mobilisingprivateinvestment.........................................82.1.12.1.22.1.3Highcostof

capital........................................................................8Uncommercialrisk-adjustedratesofreturn...................................8Lackofbankableinvestmentpipelineatscale

..............................9Roleof

NDBs

inovercomingfinancialchallenges

................................9Fourmobilisationroles.......................................................................10NDBs

asmobilisers............................................................................1033.1.13.1.23.1.3Green

bondissuance..................................................................11Pooledportfolioapproaches

.......................................................12Loansyndication.........................................................................12NDBs

asblendersofconcessionalfinance

........................................13NDBs

aspipelinedevelopersof

cleanenergy

projects......................15NDBs

as

policy

influencers

shaping

conducive

frameworks

andpromotingsustainablefinance...................................................................164Increasing

international

climate

finance

channelled

through

EMDENDBs

........................................................................................................17Green

ClimateFund...........................................................................195RecommendationsfortheG20

..........................................................23References

...............................................................................................25DisplayitemsFigure1Mitigation,sourcesofclimateflows,

average2019–2020..............7Figure2Adaptation,sourcesofclimateflows,average2019–2020............7Figure

3

Green

bonds

issued

by

national

development

banks

in

emerginganddevelopedmarkets,2014–2022

.........................................................11Box1

SDG

Indonesia

1:

a

blended

finance

platform

to

scale

sustainableinfrastructureinvestment...........................................................................14Box2

Project

developmentgrantstosupport

geothermaldevelopment

16Figure

4

Level

of

climate

finance

concessionality

by

provider,

average

2019–2021..........................................................................................................18Figure

5

Concessional

finance

by

provider

and

instrument,

average

2019–2021..........................................................................................................19Figure

6

Cumulative

disbursements

from

major

multilateral

climate

funds

to2022..........................................................................................................20Figure7CumulativeGCFfundingtointernationalandnationalentities....21Figure

8

GCF

approved

and

disbursed

financing

to

international

and

nationalentities,2015–2023...................................................................................224ODI

PolicybriefAcronymsAFAdaptationfundDBSABNDESCRFDevelopmentBankof

SouthAfricaBrazilianDevelopment

BankCarbonReductionFundDFIDMDevelopmentfinanceinstitutionDevelopedmarketEMDEsESGETMFESEmergingmarketanddevelopingeconomiesEnvironmental,socialandgovernanceEnergyTransmissionMechanismFundode

EnergiaSustentávelFinancialinstitutionsFIGCFGEFGFANZGHGIDFCIFIIPCCJETPKPILCCRMDBNDBNAFINRDBPPPGreenClimate

FundGlobalEnvironment

FacilityGlasgowFinancialAllianceforNetZeroGreenhousegasInternationalDevelopment

Finance

ClubInternationalfinancialinstitutionIntergovernmental

PanelonClimateChangeJustEnergyTransitionPartnershipKeyperformanceindicatorsLow-carbon,

climate-resilientMultilateraldevelopmentbankNational

developmentbankNacionalFinancieraRegional

developmentbankPublic–privatepartnershipPTSMISFRUNFCCCPTSaranaMultiInfrastrukturSustainable

financeroadmapUnitedNationsFrameworkConventiononClimateChange5ODI

Policybrief1

IntroductionTheglobal

economy

mustundergoafundamental

and

urgentstructuraltransformationtoshiftto

low-carbon,climate-resilient(LCCR)growthtoreachanetzeroworldby2050.

Tolockthisin,countries

mustinvestin

cleanenergyinfrastructureand

mobilisehugesumsofcommercialcapital

to

financeit.

Thescaleof

thechallengeishugeandwellknown.By2025,emergingmarketanddevelopingeconomies(EMDEs)(excludingChina)willneedto

invest$1trillionperyearinsustainableinvestment(Songwe

et

al.,

2022).Since

2014,theG20hasfocusedon

the

mobilisation

ofprivatecapitalto

supportLCCRgrowth

butinternationalprogresswiththis1agendahas

been

faroffthepaceneededtosupportEMDE’sfinancethistransition.National

developmentbanks(NDBs)havebeenkey

playersin

thisendeavour,butto

datehave

largely

beenoverlooked

andunderutilisedbytheG20andthe

international

community,wheremuch

of

the

conversationhascentredon

multilateralandregionaldevelopment

banks(MDBsandRDBs),developmentfinanceinstitutions(DFIs)and

themobilisationofinternationalprivatecapital.NDBsarethelargestpublicproviderofmitigationfinance

(Figure1)2andthe

second-largestprovider

ofadaptationfinance

(Figure2).3AverageannualNDBclimateflowsbetween2019and

2020represented22%

($129.1billion)and31%($15.5billion)of

totalmitigationand

adaptationfinancerespectively.Intermsof

mitigation,NDBflowsarealmosttriplethosefrom

MDBsanddwarfthe$2

billionfrommultilateralclimatefunds.EMDENDBsplayacriticalroleinmobilisingprivateinvestmentincleanenergy,notonlyinternational

private

capitalbutperhapsmoreimportantlydomesticprivate

capitalwhichsupportsthedevelopmentofdomesticcapitalandsustainablefinancemarkets

more

broadly.Thislatter

pointisoften

overlookedbutiscriticalgiventheminisculeportfolioallocationstoEMDEsbyOECDinstitutionalinvestors1Forexample,thedevelopment

oftheG20

infrastructureas

anassetclass

roadmapandthecreationofthe

Global

Infrastructure

Hub

in

2014,

the

adoption

of

the

G20

Hamburg

Principles

in

2016,

where

theG20

endorsed

a

target

of

increasing

MDB

private

finance

mobilisation

by

25–35%

by

2020

from

2016levels,

and

the

G20

discussions

on

MDB

reform

and

the

G20

sustainable

finance

roadmap

(SFR)developedin2021to

scalesustainablefinance.2The

flows

captured

by

CPI

(2022)

are

those

from

national

development

finance

institutions

where

asingle

country

owns

the

institution

and

the

finance

is

directed

domestically.

For

the

purposes

of

thisanalysis,thesearelargelyNDBs.3MDBs,whicharethelargestprovidersofadaptationfinance,accountfor

36%

($17.6billion)of

flowsonaveragebetween2019and2020.6ODI

Policybrief(OECD,2021)andtherecentexodusof

large

globalinvestors

frominternationalinitiativessuchas

the

GlasgowFinancialAllianceforNetZero(GFANZ)and

theNet-ZeroInsuranceAlliance.Figure1

Mitigation,

sourcesofclimateflows,average2019–2020Source:ClimatePolicyInitiative

(2022)Accessto

international

climatefunds

byEMDENDBs,especiallyconcessionalcapital,iskeyto

supportcountries’transitionand

tomobilisethe

scaleof

privateinvestmentrequired

(Griffith-Jonesetal.,2020).However,

directaccess

has

hithertobeenthe

preserve

of

themultilateralsystem,largelybypassingEMDENDBs,eventhoughthese

actorspossessanunrivalledknowledgeoflocalmarkets,whichmeans

theyare

wellplacedtounderstandriskandpriceit,andhavelong-standing

relationshipswithlocalpublicandprivatesectorswhichtheycan

leverage

tooriginateanddevelopinvestmentopportunities.Figure2

Adaptation,

sourcesofclimateflows,average2019–2020Source:ClimatePolicyInitiative

(2022)Fullyharnessingandintegrating

EMDENDBsintodomestic

andinternationalpolicyframeworks

anddiscussions

willhelpshifttheneedle.TheIndianG20financetrack,which

hasprioritisedfinancingclimateaction,offersan

opportunityto

do

this.Thispolicybrieffocuseson

EMDENDBs’roleinoneaspectof

thistransition–supportingthetransformationofnationalenergysystemsandthe

mobilisationof

privatefinancerequired.Itbrieflyoutlines

thefinancingchallengeand

theroleofNDBsinovercomingthesebarriers(Section2).Itthenoutlinesfourkey

mobilisationroles,highlightingthecritical

importanceof

blended

financeandaccessto7ODI

Policybriefinternationalclimatefinance

(Section3).Section4illustrates

howEMDENDBshave

theleastaccessto

internationalclimatefinancedespitemobilisingthelargestsums

ofclimatefinance($145billionaverage2019–2020).

It

concludes

by

urgingthe

G20

to

explorehowtobetter

engage

EMDENDBsinG20processesand

offerssomesuggestions

on

how

thiscouldbedone.

Thebriefalsomakesanumber

ofrecommendationsonhowtheG20

Sustainable

FinanceRoadmap(SFR)should

be

adaptedto

recognisetheroleof

EMDENDBs.2

Transformingenergysystems

–thefinancialchallengeShiftingtoLCCRgrowthpathwaysrequiresan

urgent

and

radicaltransformationof

energysystems,attheheartof

whichwillbetheneedtoscalecleanenergyinvestment.Successwilldependontheabilityofcountriesto

createcommercialmarketsincleanenergywhichcan

mobilisethevastprivate

capitalrequired.

Thisisnotaneasytaskfor

anycountrybutis

especiallychallengingfor

EMDEs,whosecapital

marketsarenotwell-developedand

whosepublicfinancesarestretched.Challengesto

mobilisingprivateinvestmentThreemainissuesthwarteffortsby

the

G20(e.g.focus

area4intheSFR)andthebroaderinternationalcommunityto

mobilisetherequiredprivateinvestment.2.1.1

Highcost

of

capitalCleanenergysystemsoftencallfor

largeupfrontinvestmentwithlongpaybackperiods,requiringlong-termfinancing.Thisisnotwidelyavailable.If

itisavailableit

isoftenextremelyexpensive,threatening

projectbankability

(e.g.

affordabilityissues).2.1.2

Uncommercialrisk-adjustedratesofreturnThereare

alargerangeofrisks

whichcanimpedecommercialinvestment(Attridge

et

al.,2020).Political,

policyandregulatoryuncertainty

oftenarises

fromalack

oflegalframeworksforindependent

powerproducers,

unfavourabletransmissionaccess8ODI

Policybriefand/orfossilfuelsubsidieswhichcreatean

unevenplayingfield.Technologicalriskishighforfrontierrenewableenergytechnologiesastheyare

untested(e.g.batterystorage,hydrogen,

floatingsolar).Evenprovenandcost-effectivetechnologiessuchas

solarcanbeperceivedasriskyifthereislittleexperiencewiththeminanewcontext.Sometechnologieshavehighenvironmental,

social

andgovernancerisks,suchasgeothermalenergyorlarge-scalehydropower.Macroeconomicriskcanbehigh,especiallyforeignexchangerisk,whenequipmentis

importedand

paidfor

inhard

currency

duringconstructionandfutureoperationalrevenuesaredenominatedinlocalcurrency.Creditriskcanbehighdue

to

the

poorcredit-worthiness

ofutilityoff-takers.These

risksinisolationorcombinedoftenresultin

uncompetitive

risk-adjustedratesofreturn(i.e.thereturnsare

toolowforthelevelof

realor

perceivedrisks).2.1.3

Lack

of

bankableinvestment

pipelineat

scaleMobilising

vast

sums

of

commercial

capital

assumes

that

there

is

apipeline

of

investable

assets

at

scale

which

can

underpin

mobilisationproducts

and

vehiclestargetedforexampleatinstitutionalinvestors.RoleofNDBsin

overcoming

financial

challengesGiven

their

development

mandate

and

financing

models,

NDBs

can4play

a

key

role

in

overcoming

some

of

these

financing

barriers.

Theycan:1.

Providelonger-term,moreaffordablefinancingthanisavailablein

themarket(e.g.patientfinance)

to

addresscostofcapitalissues,forexamplethroughthe

deploymentof

seniorloanswithalonger

tenororothernon-commercialterms.2.

Takeon

higherriskthanmanycommercialinvestorsanddeployarangeofrisk-mitigationcapital

to

shifttherisk-adjustedrateofreturntomakeitcommercial,

forexamplebydeploying

subordinateddebt,mezzaninefinance,equityinvestment,guaranteesand

insurance.3.

Useprojectdevelopmentfacilitiesusuallyfundedbygrants

todevelopabankablepipeline

ofcleanenergy

projects.4In

many

cases

NDBs

can

access

finance

at

longer

maturities

and

more

cheaply

than

commercialfinanciers.9ODI

Policybrief3

Fourmobilisation

rolesNDBscanplayfourkeyrolesinmobilisingcleanenergy

privateinvestment:as

mobilisersofprivatefinance;

asintermediariesblendinginternational

climateandpubicdevelopmentfinance;

aspipelinedevelopers;andas

policyinfluencers.Theserolesarecloselylinkedandreinforceeachother(Griffith-Joneset

al.,2020).NDBsasmobilisersNDBscanmobiliseprivateinvestment

at

thetransaction

orinstitutionallevel.Transaction-level

mobilisationreferstosituationswheretheNDBhasmobilisedprivateinvestmentintoanoverallfinancingpackagefor

a

project

orbusiness(e.g.,co-investmentinequity

ordebtdeals,

loansyndication,andrisksharingthroughguaranteesandinsurance).Institutional-level

mobilisationreferstomobilisationasaresult

of

NDBbalancesheet

leveraging

(e.g.,greenbondissuance),investmentmanagementofcommercialcapitaland/orthedeploymentofpooledportfolioproducts(TahirandRobinson,2023).

Generally,itisat

the

institutionallevelwherethe5largestsumsofprivatefinance

canpotentially

be

mobilised

insupportof

the

clean

energytransition.Thisbriefhonesinon

three

approaches

which

havethelargestpotentialtomobiliseat

scale:greenbondissuanceandpooledportfolioapproachesattheinstitutionallevel,andloansyndicationatthetransactionlevel.5Foragoodoverview

ofmobilisationapproachesseeGregory

(2023).10ODI

Policybrief3.1.1

GreenbondissuanceOne

ofthemost

common

institutionalapproaches

isthe

issuanceofgreenbonds.Figure

3

Green

bonds

issued

by

national

development

banks

inemerging

anddevelopedmarkets,2014–2022$25$20$15$10$56050403020100$0EM

DM

EM

DM

EM

DM

EM

DM

EM

DM

EM

DM

EM

DM

EM

DM

EM

DM201420152016201720182019202020212022Source:

ClimateBondsInitiative(2023).Notes:

EM

=developmentbankslocatedinemergingmarkets;DM

=

developmentbankslocatedin

developedmarkets.ForEM

andDMclassificationseeCBI

listedgeographies.This‘green’leveragingofEMDENDBbalancesheetshastwobenefits:itenablesNDBstosignificantlyscale

their‘green’investment

capacitywithouttheneedforfiscaltransfers

orequityinjection;anditsupportsthe

developmentoflocalcapital

marketsandenablesNDBstomobiliselocalinstitutional

investorswhohitherto

maynothavebeeninvolvedwithgreen

investmentproducts.Thisroleisfurtherdiscussedin

Section3.4.In2022EMDENDBsissued$11.4billioncomparedto

$14billionbyDMNDBs.Startingfrom

azero

basein2014,there

has

beensignificant

growthinEMDENDB

issuance,anditappearsto

becatchingup

on

DMNDBissuance(Figure3).

Inthelast

twoyears,theaverageissuance

sizeforEMDENDBshasgrownbyamultipleof2.5–3,andthe

averageissuancesizehas

beenlargerthanDMNDBs.Thisgrowthisindicativeof

theincreasing

appetiteofprivateinvestorsinEMDEsfor

‘green’

and

sustainableinvestment.ItalsodemonstratesthepioneeringroleofNDBsinthedevelopmentofdomesticgreenbondmarkets,helpingprivateinvestorsfeelmorecomfortableinthisspace

and

pavingthe

way

forsubsequentissuancebyother

financialinstitutions(FIs)orcorporates.

Thishas6supportedthe

developmentof

domesticcapitalmarketsmore6Sometimes

with

credit

enhancement

support

from

the

NDB

for

corporate

bond

issuance

to

fundinvestment

in

clean

energy.

For

example,

PTSMI’s

credit

enhancement

support

for

the

issuance

of

a

$52.4million

bond

by

a

large

Indonesian

hydro

power

company

raised

the

initial

credit

rating

from

A-

to

AAA,whichhelpedmobiliselocalinstitutionalinvestmentinto

thiscompany.11ODI

Policybriefbroadly,

reducesforeignexchangeriskfortheNDB

andmobiliseslocalcurrencyinvestmentincleanenergyprojects.Greenbondsare

use

ofproceeds

bonds

(meaningtheytrackandreporton

theuseofproceeds).Anewdevelopmenthas

beensustainabilitylinkedbonds,whichare

general

purposebonds

withspecificsustainability-linkedtargets

(KPIs),wherethereisa

usuallyapenaltyassociatedwith

notmeeting

theKPIs,suchasastep-upclausewherethebondinterestrateincreases.PTSMIisapioneerinthisspaceandiscurrentlymarketinga

five-year$0.5billionsustainabilitylinkedbond

to

privateinvestors.Themarginpricing

isstillbeingdeterminedbuttherewillbe

twoKPIs.Onewillfocusontheevolutionof

PTSMI’sgreeninvestmentportfolioover

fiveyearsandthe

second

willfocusonstafftrainingonsustainablefinance.3.1.2

PooledportfolioapproachesPooledportfolioapproaches

enableNDBsto

aggregateprojectsandstructureinvestmentproductstomeettheneedsofinstitutionalinvestorsinterms

of

ticketsizeand

riskappetite.

Theseproductscanbestructuredin

different

trancheswithdifferingriskprofiles.

Blendedfinancecan

be

used

for

thehigher-risktranches.BrazilianDevelopment

Bank’s(BNDES)

pooledfundFundodeEnergia

Sustentável(FES)

mobilisesprivatecapitalto

acceleratecleanenergyinvestment.FES

ismanagedby

a

private

fundmanager.Itpoolsfinance

from

different

sources

including

privateinvestorsand

strategicallyinvestsinrenewableenergyprojectsinlinewiththe

fund’sinvestmentguidelines

andobjectives.

Throughthefund,BNDESfinances

theconstructionof

clean

energyprojectsandsecuritisesthe

revenueflowsonceassetsare

operational.3.1.3

LoansyndicationLoansyndication

isaverycommonapproachto

financinglarge7cleanenergy

infrastructureinvestment,where

the

loanrequiredistoolargefor

one

investor.It

has

provedeffectiveinmobilisinglocalprivateinvestment(e.g.commercialbanks)and

isespeciallyusefulwherecapital

markets

arenotwell-developed.TheapproachallowsNDBstodiversifyriskon

theirbalancesheet,thereby

managingbalancesheetexposurelimits,

andleveragelargerfinancingpackagesforrenewableenergyinvestment.Theapproachalso

exploits

oneof

thekeycomparativeadvantagesofNDBs,namelythesoftenhancement

theirinvolvementinthesyndicationplays,giving

reassurancetolocal

privateinvestorswhoarenotfamiliarwith

the

assetclassorsub-sector.ThisreassurancecanstemfromtherelationshipoftheNDBwiththe

government,its7

A

lending

process

in

which

a

group

of

lenders

provides

funds

to

a

single

borrower

or

project.

Usually

theNDB

is

the

leadarranger

and

lender

of

record.

IntheseA/B

loanstructures,

the

NDB

provides

a

seniorloan

from

itsown

balance

sheet

and

retains

a

portion

of

the

loan

(‘A’

portion)

for

itsown

account

and

sellstheremainder(‘B’loans)toprivateinvestors.12ODI

Policybrieftechnicalexpertise

anditsenvironmental,

socialandgovernance

duediligence,whichalsoreducestransaction

costs.NacionalFinanciera

(NAFIN)hasusedloansyndication

toscaleprivate

cleanenergyinvestment

in

Mexico.NAFINtook

the

leadinearlyroundsofsyndicationfinancing

inthewind

energymarket,butwasable

tostepbackascommercialsyndicationmarkets

developed.NDBsasblendersof

concessionalfinanceAsexplainedinSection

2,

much

cleanenergyinvestment

inEMDEsrequiressomeform

of

blendedconcessional

finance

toaddresshighcapitalcosts/affordabilityconcernsand/orshiftthe

risk-adjustedrateofreturn.

AlthoughsomegovernmentsprovidetheirNDBswiththiskindof

concessionalfinance,blendedfinance

isoftenmainlyfundedbyexternalconcessional

climate

capital–underscoringtheimportantroleofconcessionalcapitalandtheneedto

channel

itthrough

EMDENDBs.Atthetransactionlevel,blendedconcessional

financecanbeusedinmany

different

waysto

makeinvestmentinhigh-riskprojectsorcorporatesviable,for

exampleby

boostingreturns,reducingriskorimprovingaffordability(Attridge,2022).

EMDENDBscan

alsouse8blendedconcessional

financeto

deployportfolioapproacheswhicharemoreattractive

todomesticandinternational

institutionalinvestors.8SeeAttridge(2022)foradetailed

overviewof

howDFIs

useinstrumentstoachievetheseobjectives.13ODI

PolicybriefBox1SDGIndonesia1:

ablendedfinanceplatformto

scalesustainableinfrastructureinvestmentSource:PTSMIThereare

many

goodexamplesof

blendedfinance,illustratingnotonlyhowimportantconcessionalclimatefundsareto

EMDENDBs,but

alsohowablendedfinanceapproach

rooted

inagovernmentNationallyDeterminedContribution(NDC)ornetzero

plancankickstartthe

developmentofcleanenergy

markets.SDGIndonesia

1,forexample,

isa$3.2billionblendedfinanceplatformto

scalesustainableinfrastructureinvestment,especiallyrenewableenergy,providingdevelopment,de-risking,debtfinancingandequity

facilities(seeBox

1).This

enablesPTSMI,whichmanages

the

platform,toprovideend-to-endrenewableenergyinfrastructure

financing.Blendedfinance

willalsoplayacriticalrole

intheJustEnergyTransitionPartnerships(JETPs)established

throughtheG20,UNFCCCCOPandotherinternation