New Publication from UNCTAD
The BU is pleased to share the white paper with members and partners via the link below.
From the Highlights:
Amid growing climate, geopolitical, and supply chain challenges, investment risks are rising - particularly in structurally weak and vulnerable countries.
Political risk insurance (PRI) plays a vital role in de-risking investments and mobilizing finance towards achieving the Sustainable Development Goals (SDGs).
Between 2018 and 2022, PRI providers insured $150 billion worth of projects in developing countries, including least developed countries (LDCs).
Developing countries (excluding LDCs) are the largest PRI beneficiaries (70 per cent of the projects). LDCs account for only 15 per cent of projects covered by PRI.
Export credit agencies (ECAs) are the primary providers of PRI, accounting for 78 per cent of total issuance over the past decade, while multilateral institutions and private insurers account for 7 and 15 per cent respectively. However, renewable energy projects secured only 4% of total PRI.
UNCTAD findings point to low investor awareness, high costs, and inconsistent ESG standards as key barriers.
