The role of development finance institutions in energy transitions

Development finance institutions (DFIs) account for only around 1% of total financing for energy sector investment, but their importance goes well beyond this relatively small share. DFIs are specialised financial institutions set up to support a range of economic and social objectives by financing projects that may not otherwise get commercial funding. Beyond funding specific projects, DFIs play a crucial role in enabling investments by providing sector-specific policy support or technical assistance which lay the groundwork for long-term, transformative changes in emerging markets.