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MAF insights on the Green Guarantee Group meeting 

January 31, 2025

On 30 January, the Technical Support Unit (TSU) of the Mitigation Action Facility (MAF) actively participated in the second virtual technical expert Green Guarantee Group (GGG) meeting in 2025 hosted by Germany’s Federal Foreign Office (Auswärtiges Amt, AA) and Ministry of Economic Affairs and Climate Action (Bundesministerium für Wirtschaft und Klimaschutz, BMWK). The group brings together governments, Multilateral Development Banks, Development Agencies, Think Tanks, private sector actors – including investors, insurance companies, RE manufacturers companies and service providers – as well as civil society actors and academia. The meeting aimed to foster discussions between the more than 30 participants on leveraging guarantees to finance the green transition. 

MAF’s involvement was highlighted by a comprehensive presentation delivered by our TSU colleagues, Jasmina and Juan David. They provided an in-depth overview of MAF’s mission, emphasising its role as a multi-donor facility that offers grants for various blended finance instruments, including guarantees and technical support, to support ambitious climate mitigation projects globally. This presentation underscored MAF’s commitment to driving climate action across sectors by providing technical support and financial assistance for ambitious climate projects worldwide. 

The discussions during the meeting resonated deeply with MAF’s mission, particularly in exploring innovative financial mechanisms to mobilise private capital for climate initiatives. The emphasis on guarantees as tools to de-risk investments aligns with MAF’s strategy of utilising blended finance instruments to support climate mitigation projects. MAF’s guarantees play a crucial role in enabling a demonstration effect and raising awareness about the benefits of climate mitigation solutions. They also help reduce uncertainty around untested business models in local contexts, provide comfort to financial providers, and unlock long-term financing, ultimately lowering the cost of capital for green investments. 

A key takeaway from the event was the recognition of the critical role guarantees play in mobilising private sector investment for climate projects. This insight reinforces MAF’s approach to blended finance and highlights the importance of developing robust guarantee mechanisms to attract private capital. These lessons will inform MAF’s ongoing projects and strategies, particularly in enhancing financial instruments to support climate mitigation efforts. 

MAF’s participation in the event elevated its profile among key stakeholders. The insights provided – through both MAF’s interventions and contributions from all participants – serve to inform policy discussions among relevant parties, including policymakers, current and potential donors, and institutions such as BMWK. These exchanges contribute to increasing the utilisation of guarantees as a key financial instrument for climate action.   

Looking ahead, MAF is committed to integrating the insights gained from the GGG Expert Group Meeting into its ongoing and future initiatives. By continuing to collaborate with diverse stakeholders and leveraging innovative financial instruments, MAF aims to expand collaboration with public and private sector to enhance its impact on global climate mitigation efforts. 

For more information on MAF’s work and to stay updated, subscribe to our newsletter. To learn more about the GGG, check out the Climate Policy Initiative’s (CPI) website. You can see the slides that the TSU presented about the MAF at the event below: