Understanding Climate Finance
How World Bank’s MIGA insures climate project in challenging environments
Jan 10, 2023
Olga Calabozo Garrido leads MIGA's work in Latin America and the Caribbean, focusing on enabling climate-focused investments in challenging environments. She discusses how MIGA provides crucial political risk insurance to attract private investors. The conversation dives into evaluating risks, expanding local currency guarantees, and the strategic sectors targeted for climate resilience. Olga emphasizes the importance of collaboration between project teams and investors to foster economic growth while supporting vulnerable communities through sustainable initiatives.
32:22
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Quick takeaways
- MIGA offers political risk insurance and credit enhancements to boost investor confidence in climate projects within emerging markets.
- The agency aligns its operations with the Paris Agreement, aiming for 100% alignment by 2025 to support climate change initiatives.
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Overview of MIGA's Role
MIGA, part of the World Bank Group, is dedicated to promoting foreign direct investments in developing countries through political risk insurance and credit enhancement. It enhances investor confidence in emerging markets by mitigating risks such as currency restrictions, expropriation, and civil disturbances. With just $400 million in paid-in capital, MIGA has built a portfolio of guarantees worth $24 billion, leveraging private capital significantly. This capability allows MIGA to issue guarantees that not only attract private investments but also provide a safety net for investors, enabling long-term economic projects in risk-prone areas.
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