Achieving global climate goals and meeting the Sustainable Development Goals requires trillions of dollars in investment, particularly in developing countries where financial risks and limited private capital remain significant barriers. The OECD estimates that of the USD 89.6 billion provided and mobilised by advanced country governments in 2021, only 14.4 billion was from the private sector.
This disparity underscores the need to improve the attractivity of sustainable development investments in regions perceived as ‘high risk’ and to reflect on new approaches to support such endeavours. Among an array of mechanisms that can be leveraged, guarantees have emerged as a powerful, yet underutilised, tool for mitigating risks and mobilising private-sector finance toward impactful climate solutions. Guarantees provide a safety net for investors, enabling the flow of capital into projects that mitigate and adapt to climate change while fostering sustainable development.
Innovative Investment Risk Mitigation: Harnessing Guarantees for Climate Solutions Across Sectors
To address this challenge, BASE and UNITAR’s Global Platform for Action on Sustainable Energy in Displacement Settings (GPA) will co-host an event at Building Bridges Geneva on December 11, 2024, focused on the transformative potential of guarantees in mobilising sustainable investments. This session will spotlight how guarantees can de-risk investments, enabling the flow of private capital into projects that deliver significant climate and social impact. By leveraging public and philanthropic funding strategically, guarantees can amplify private-sector engagement, creating a pathway to bridge the persistent finance gap.
The event aims to highlight successful case studies and generate actionable insights into deploying guarantees more effectively. Panellists from leading organisations, including Swedish International Development Cooperation Agency (SIDA), the Economic Cooperation and Development division of the Swiss State Secretariat for Economic Affairs (SECO), BASE and the GPA will share real-world examples, such as a credit guarantee supporting the investment in SMEs implemented in Peru and a concept of philanthropic guarantee to foster financing of clean energy in humanitarian settings, such as refugee camps. These discussions will also explore key systemic shifts required to make guarantees more accessible and scalable.
This session seeks to foster collaboration across public, philanthropic, and private sectors to maximise the potential of guarantees. By addressing critical questions—such as which risks need coverage, how to design effective partnerships, and how to ensure equitable sharing of benefits—participants will contribute to building a more resilient financing ecosystem. This event is not only a platform for dialogue but a critical step toward unlocking the transformative power of guarantees to bridge the climate finance gap and drive sustainable progress globally.
About the speakers:
Peter Hallbom, Deputy Head and Lead Transaction Manager at the Guarantee Origination Unit at the Swedish Development Cooperation Agency (Sida), has extensive experience and know-how from sustainable direct-, debt- and PE investments and structuring of guarantees gained from leading cross-border, complex transactions in Africa, Asia, LATAM and Europe on behalf of Sida and previous employers. His main focus has been transactions within Climate & Renewable Energy and Manufacturing & Services. Since joining Sida, Peter has been responsible for multiple guarantees reaching signing, including guarantees to IIX’s Women’s Livelihood Bond series, Guarantco and most recently the signing between the Inter-American Development Bank and Sida for the MUSD 250 guarantee to support its Amazonia Forever program.
Christian Brändli, is the Deputy Head of the Private Sector Development team at Switzerland’s State Secretariat for Economic Affairs SECO. He oversees the private sector development portfolio in Central Asia, Ukraine, Western Balkans and North Africa and is thematically responsible for sustainable finance, impact investing and blended finance. He is experienced in the area of financial market development and climate change with a focus on developing countries and emerging markets. Christian has studied international affairs with a focus on political science and economics with degrees from the University of Zurich and the Geneva Graduate Institute.
Mark Gibson, is an energy and environmental specialist with over 25 years of experience. He joined Global Platform for Action on Sustainable Energy in Displacement Settings (GPA) at UNITAR in 2018. Prior to which he spent two years with UNHCR Tanzania where, among other things, he produced an Energy and Environmental Strategy to address key impacts from the humanitarian response at three refugee camps. Before working in the humanitarian sector, Mark spent 20 years providing private sector support to a broad spectrum of energy and environmental projects in Europe, Africa, North America, Latin America, Asia and the Middle East.
Daniel Magallón, is a sustainable energy technology, financial, and market specialist with many years of experience implementing projects in Europe, Asia, Latin America and Africa for private and public organisations. Daniel has led BASE, a Swiss-based organization dedicated to scaling up investments and finance in climate change solutions, since 2007. His work focuses on developing market-based business models and financial mechanisms, and he led key projects leveraging guarantees in Latin America.
Join us in person at Building Bridges (registration mandatory) or access the live stream on BB’s Youtube channel.
