This paper sets out how to unblock up to US$1 trillion in foreign direct investment to supercharge a green energy transformation in developing countries. It demonstrates that currently risk is mispriced resulting in significant 'overpayment' in the cost of capital in developing countries resulting in insufficient return to generate investment in green energy projects. It proposes a partial foreign exchange guarantee which could halve current market costs paving the way for the substantial investment in the green transformation urgently required.
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