Top 10 clean energy financing institutions 2014

Development finance institution (DFI), also known as a Development bank, is a

financial institution A financial institution, sometimes called a banking institution, is a business entity that provides service as an intermediary for different types of financial monetary transactions. Broadly speaking, there are three major types of financial ins ...

that provides

risk capital A capital requirement (also known as regulatory capital, capital adequacy or capital base) is the amount of capital a bank or other financial institution has to have as required by its financial regulator. This is usually expressed as a capital ...

for economic development projects on a non-commercial basis. DFIs are often established and owned by governments or

nonprofit organization A nonprofit organization (NPO), also known as a nonbusiness entity, nonprofit institution, not-for-profit organization, or simply a nonprofit, is a non-governmental (private) legal entity organized and operated for a collective, public, or so ...

s to finance projects that would otherwise not be able to get financing from commercial lenders. They are often structured as a

company A company, abbreviated as co., is a Legal personality, legal entity representing an association of legal people, whether Natural person, natural, Juridical person, juridical or a mixture of both, with a specific objective. Company members ...

that provides loans for projects that a government or nonprofit wants to encourage for non commercial reasons. They can be at a local, national or international level. DFIs include

multilateral development bank An international financial institution (IFI) is a financial institution that has been established (or chartered) by more than one country, and hence is subject to international law. Its owners or shareholders are generally national governments, alt ...

national development bank A national development bank is a development bank created by a country's government that provides financing for the purposes of economic development of the country. Africa * Botswana: National Development Bank of Botswana (NDB Botswana) * Ethiopia ...

s, bilateral development banks, microfinance institutions,

community development financial institution A community development financial institution (US) or community development finance institution (UK) - abbreviated in both cases to CDFI - is a financial institution that provides credit and financial services to underserved markets and populations ...

and revolving loan funds.Andrea Levere, Bill Schweke, and Beadsie Woo, Development Finance and Regional Economic Development, Washington, DC: CFED, July 2006

Mandate

DFIs can play a crucial role in financing private and public sector investments in developing countries, in the form of higher risk loans, equity positions, and guarantees.Dirk Willem te Velde and Michael Warner (2007
Use of subsidies by Development Finance Institutions in the infrastructure sector

Overseas Development Institute ODI Global (formerly Overseas Development Institute) is a global affairs think tank, founded in 1960. Its mission is "to inspire people to act on injustice and inequality through collaborative research and ideas that matter for people and the ...

DFIs often provide finance to the private sector for investments that promote development and to help companies to invest, especially in countries with various restrictions on the market.

Climate financing

, development banks and private finance had not reached the US$100 billion per year investment of climate financing stipulated in the UN climate negotiations for 2020. However, in the face of the COVID-19 pandemic's economic downturn, 450 development banks pledged to fund a "

Green recovery Green recovery packages are proposed environmental, regulatory, and fiscal reforms to rebuild prosperity in the wake of an economic crisis, such as the COVID-19 recession or the 2008 financial crisis. They pertain to fiscal measures that intend ...

" in developing countries.

Typology

Development banks include: *

Community development bank A community development bank (CDB) or Community Development Financial Institution (CDFI) is a development bank or credit union that focus on serving people who have been locked out of the traditional financial systems such as the unbanked or unde ...

s which fund low-income areas in the United States *

Land development bank A land development bank , abbreviated LDB, is a special kind of development bank in India. It is a quasi-commercial type that provides services such as accepting deposits, making business loans, and offering basic investment products. The main ...

s which provide financing to develop agriculture in India *

National development bank A national development bank is a development bank created by a country's government that provides financing for the purposes of economic development of the country. Africa * Botswana: National Development Bank of Botswana (NDB Botswana) * Ethiopia ...

s are government-owned financial institution that provides financing for economic development. *

International financial institutions An international financial institution (IFI) is a financial institution that has been established (or chartered) by more than one country, and hence is subject to international law. Its owners or shareholders are generally national governments, alt ...

conducting development-oriented finance on a bilateral or multilateral basis *

Multilateral development bank An international financial institution (IFI) is a financial institution that has been established (or chartered) by more than one country, and hence is subject to international law. Its owners or shareholders are generally national governments, alt ...

are development banks set up by a group of countries and often operate under international laws.

List of Development Finance Institutions (incomplete)

African Development Bank The African Development Bank Group (AfDB, also known as BAD in French) is a multilateral development finance institution, headquartered in Abidjan, Ivory Coast since September 2014. The AfDB is a financial provider to African governments and ...

(AfDB) *

Asian Development Bank The Asian Development Bank (ADB) is a regional development bank to promote social and economic development in Asia. The bank is headquartered in Metro Manila, Philippines and maintains 31 field offices around the world. The bank was establishe ...

(ADB) *

Asian Infrastructure Investment Bank The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank and international financial institution that aims to collectively improve economic and social outcomes in Asia. It is the world's second largest multi-lateral d ...

(AIIB) * Bank of the South * Black Sea Trade and Development Bank *

Caribbean Development Bank The Caribbean Development Bank (CDB) is a development bank that helps Caribbean countries finance social and economic programs in its member countries through loans, grants, and technical assistance. The CDB was established by an Agreement signed ...

Central American Bank for Economic Integration The Central American Bank for Economic Integration - CABEI ( BCIE in Spanish) was founded in 1960. It is an international multilateral development financial institution. Its resources are invested in projects that foster development to reduce pov ...

Council of Europe Development Bank The Council of Europe Development Bank (CEB, ) is a multilateral development bank, granting loans to member states to help disaster victims, help with job creation, and improve social infrastructure. , its assets stood at 28 billion euros, whic ...

* Development Bank of Latin America and the Caribbean (CAF) *

Eurasian Development Bank The Eurasian Development Bank (EDB) is an international development finance institution investing in the development of the economies, trade and other economic ties, and integration in Eurasian countries. The EDB was founded in 2006 and is head ...

European Bank for Reconstruction and Development The European Bank for Reconstruction and Development, shortened to EBRD ( French: ''Banque européenne pour la reconstruction et le développement'' or ''BERD''), is an international financial institution founded in 1991 in Paris. As a multilat ...

European Investment Bank The European Investment Bank (EIB) is the European Union's investment bank and is owned by the 27 member states. It is the largest multilateral financial institution in the world. The EIB finances and invests both through equity and debt sol ...

Inter-American Development Bank The Inter-American Development Bank (IDB or IADB) is an international development finance institution headquartered in Washington, D.C., United States of America. It serves as one of the leading sources of development financing for the countri ...

Islamic Development Bank The Islamic Development Bank (, abbreviated as IsDB) is a multilateral development finance institution that is focused on Islamic finance for infrastructure development and located in Jeddah, Saudi Arabia. There are 57 shareholding member st ...

New Development Bank The New Development Bank (NDB), formerly referred to as the BRICS Development Bank, is a multilateral development bank established by the BRICS nations (Brazil, Russia, India, China, and South Africa). According to the agreement, "the bank shal ...

World Bank The World Bank is an international financial institution that provides loans and Grant (money), grants to the governments of Least developed countries, low- and Developing country, middle-income countries for the purposes of economic development ...

References

External links