Risk Mitigation Strategies in Emerging & Frontier Markets
Emerging and frontier markets face an annual financing gap of USD 4–4.3 trillion to achieve sustainable development and climate goals, while traditional aid and investment flows remain constrained. Closing this gap will not be achieved by mobilizing more capital alone, but by strengthening the risk architecture needed to attract private investors at scale.
Unlocking private capital
At Building Bridges 2025, the BASE Foundation, Cardano Development, UNDP Rome Centre, and IMD convened nearly 100 experts to examine how targeted de-risking strategies can unlock private capital for climate and nature solutions in developing economies. Discussions highlighted persistent barriers: risks are often misperceived rather than mispriced, pre-investment support is poorly aligned with market realities, and weak risk-sharing and liquidity mechanisms deter large-scale commitments.
Participants identified a portfolio of proven tools—from guarantees and insurance to currency hedging and blended finance—that can unlock investment when deployed systematically.
Inside the report: What you’ll discover
- How de‑risking strategies can unlock private capital for climate finance in emerging and frontier markets
- Closing the sustainable finance gap: innovative tools to mobilize private investment at scale
- Blended finance, guarantees, and insurance: practical solutions for investing in developing economies
- Mobilizing private capital for climate and nature solutions through smarter risk mitigation
Explore detailed insights
Download the full report to explore the detailed insights, case examples, and actionable recommendations for donors, policymakers, DFIs, and private investors seeking to scale impact and mobilize capital where it is most needed.
Research Information & Knowledge Hub for additional information on IMD publications
CFOs in the AI era: design data-models and workflows that maximize value, redefine productivity, and establish transparent AI governance.
Based on 41 interviews across three UK-based commons enterprises, this study addresses one of the most pressing challenges of our time: encouraging local actors to contribute to the sustainable governance of supra-local common-pool resources (CPRs...
Jerry Davis examines prediction market risks and explains why these politically backed platforms may resemble high-stakes casinos more than stock markets.
Objective: The aim of this study was to describe the association of private equity (PE) investment in substance use disorder treatment facilities in the United States and opioid- and alcohol-related mortality. Methods: Facilities acquired or fo...
The “tragedy of the horizon” captures the gap between long-horizon climate damages and the shorter horizons of corporate decision-making. We provide a contracting account of this idea using a deliberately standard CARA-normal moral-hazard model. U...
Most research on social entrepreneurship highlights the positive effect of compassion on creating wealth for beneficiaries. However, while compassion drives social entrepreneurs to take prosocial actions that benefit others, the actions it motivat...
Increased collaboration shifts employees’ political ideologies and brings business benefits.
The case places participants in the role of Helge Lund, chair of BP, on 4 October 2023. Only weeks earlier, BP's chief executive officer Bernard Looney had resigned over undisclosed relationships with colleagues. Looney had been the principal arch...
The era of unchecked expansion has passed – for Søren Westh Lonning, CFO at FinTech Pleo, the challenge now is to drive balanced, disciplined growth.
The case investigates the supported search fund model pioneered by Novastone Capital Advisors (NCA) through which mid-career executives can achieve their dreams of becoming entrepreneurs though the acquisition of an SME. NCA provides support throu...
in I by IMD Brain Circuits 8 October 2026
Research Information & Knowledge Hub for additional information on IMD publications
in Journal of Business Venturing 23 September 2026, ePub before print, https://doi.org/10.1016/j.jbusvent.2026.106652
Research Information & Knowledge Hub for additional information on IMD publications
in I by IMD
Research Information & Knowledge Hub for additional information on IMD publications
in Psychiatric Services 11 September 2026, ePub before print, https://doi.org/10.1176/appi.ps.20250613
Research Information & Knowledge Hub for additional information on IMD publications
in Economic Letters September 2026, vol. 268, 113154, https://doi.org/10.1016/j.econlet.2026.113154
Research Information & Knowledge Hub for additional information on IMD publications
in Journal of Business Venturing September 2026, vol. 41, no. 5, 106607, https://doi.org/10.1016/j.jbusvent.2026.106607
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
in I by IMD
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications