ECI logo

Co-authored by HLEG group member Dr Nicola Ranger, the report focuses on what the EC should do more or less of, or should do differently, in order to make a difference to sustainable finance investment in low- and middle-income countries.

The European Commission High-Level Expert Group (HLEG) on scaling up sustainable finance in low- and middle-income countries (LMICs) was created in response to the Strategy for Financing the Transition to a Sustainable Economy.

The Group's preliminary recommendations are:

  • A new model for strategic engagement between the EU and partner countries
  • A single EU platform to support the development of sustainable projects through their lifecycle
  • Set up a bold initiative for sustainable asset recycling and securitisation in LMICs
  • Frame de-risked public-private transition and/or sustainable funds in LMICs as a new type of EU financial product, recognised through a dedicated EU legal framework
  • Engage with central banks and market authorities to accelerate the needed reforms to deepen local financial and money markets
  • The European Investment Bank, MDBs and DFIs to provide targeted technical assistance (TA) and capacity-building
  • Launch a bold and transformative initiative to support the development of green bond markets in LMICs
  • MDBs to adjust their mandate, business models and incentive structures to enhance at scale private sector mobilisation for SDGs and climate action
  • Coordinate TA support, through a dedicated sustainable finance hub, to help LMICs to develop credible sustainable finance frameworks to attract capital
  • Promote disaster risk financing, such as CAT bonds and risk pooling, in LMICs – and link this to adaptation / resilience financing.

The HLEG’s primary tasks are to identify the challenges and opportunities of sustainable finance in LMICs and to provide recommendations to the European Commission. Reporting will focus on how to increase resources from private capital to close the current SDG financing gap, and to accelerate private financial flows for the implementation of the Green Deal and a green, just and resilient recovery in partner countries.

The HLEG final report is due to be published in the fourth quarter of 2023.