At COP30 in Belém, the Mitigation Action Facility reaffirmed its role as a strategic enabler of climate action, demonstrating how innovative financial mechanisms are translating national climate commitments into measurable mitigation outcomes in emerging markets and developing economies.
Widely referred to as the “COP of implementation,” this year’s conference provided the ideal stage for the Mitigation Action Facility to showcase how its evolving financial instruments, spanning from grants to guarantees, help countries advancing from their NDC ambitions to implementation.
Launch of the report
A highlight of the Mitigation Action Facility’s participation at COP30 facilitating its own side event on 14 November was the launch of its report, “From Grants to Guarantees: How the Mitigation Action Facility’s Financial Mechanisms Transform NDC Ambition into Climate Action,” presented by Philipp Munzinger, the designated new Head of the Technical Support Unit.
The report draws from over a decade of experience in mobilising private capital for climate action in emerging markets and developing economies, showing how targeted financial instruments and policy support turn national ambition into scalable results.
Insights and impact
Despite challenging market realities, where over 80% of target groups have limited awareness of clean technologies and most stakeholders are first-time implementers of novel technologies, the Facility demonstrates how to create durable market signals and foster systemic change.
An analysis is done on 43 projects (as of June 2025) with the committed funding of EUR 682 million. The average financial leverage ratio of the completed projects standing at 8.3x, underscores strong private sector mobilization on average . The portfolio combines 51% grants, 34% guarantees, and 15% concessional loans, unlocking additional investments from the private sector, reflecting the Mitigation Action Facility’s various blended finance approaches.
Driving systemic change
Through practical case studies – from enabling green mobility in Cabo Verde to production and sale of green refrigeration and air conditioning in Thailand – the Mitigation Action Facility illustrates how combining Technical Cooperation (TC) and Financial Cooperation (FC) creates viable financial mechanisms rather than isolated projects.
As the world faces an escalating climate emergency, mobilising finance at scale has become central to achieving global decarbonisation goals. Public resources alone cannot bridge the growing investment gap – unlocking private capital is therefore essential to drive transformational change.