Recommendation 24

It is clear that private finance alone is not a panacea, and no single instrument or mechanism can address the scale, urgency and complexity of global climate finance needs. What is clearer is that the effectiveness and alignment of the UK’s ICF tools, whether ODA or non-ODA, varies significantly by context and objectives. The most impactful strategies combine multiple instruments, such as grants, loans, and risk-sharing mechanisms. These instruments each play a role in mobilising private capital through targeted, complementary approaches that address different levels of risk tolerance, funding gaps, and country-specific priorities. (Conclusion, Paragraph 85)