Designing a Multilateral Guarantee Facility for International Low-Carbon Investment

Legal, Institutional, and Political Dimensions

Project Summary

This project aims to transform international climate finance by designing innovative, scalable structures that mobilize private investment through multilateral guarantees and engage underutilized actors like BRICS countries and Sovereign Wealth Funds (SWFs). Current finance flows disproportionately benefit high-income countries, while low- and middle-income countries (LMICs) face high capital costs and limited access to adaptation funding. Building on UCL-led research and a 2024 Chatham House workshop, the project proposes a blended finance model combining concessional capital with risk-sharing guarantees to unlock private investment in low-carbon infrastructure. The team will develop governance toolkits and institutional frameworks for deploying guarantees, with outputs feeding into COP30 and South Africa’s G20 Presidency. The interdisciplinary consortium—spanning law, finance, energy systems, and policy—will collaborate with global partners to ensure practical impact. By shifting from debt-heavy models to smarter financial instruments, the project seeks to enhance equity, efficiency, and resilience in global climate finance.