**Introduction** Public-private partnerships (PPPs) can play a central role in mobilizing funding for green investments in developing regions by using public policy, procurement frameworks, and catalytic public finance to improve project bankability and crowd in private capital. When combined with blended finance instruments, PPPs allow limited public resources to mobilize substantially larger volumes of commercial finance while maintaining alignment with climate mitigation and adaptation objectives[1]. **What are green investments?** Green investments generally refer to capital allocated to climate mitigation and adaptation activities, including renewable energy and grids, energy efficiency, low-carbon transport, resilient water systems, and climate-resilient infrastructure. While global clean energy investment continues to grow, emerging market and developing economies (excluding China) still account for a disproportionately small share of total clean energy spending[2]. A key constraint is the high cost of capital faced by green projects in developing regions, reflecting policy and regulatory uncertainty, offtaker and revenue risk, construction risk, and currency exposure. PPPs and blended finance approaches are widely used to address these constraints by reallocating risk and improving expected risk-adjusted returns for private investors[1][3]. **How PPPs mobilize private capital for green investment** **1.** **De-risking projects to mobilize private capital** PPPs can mobilize private finance by using public or concessional capital selectively to mitigate risks that would otherwise raise financing costs or prevent projects from reaching financial close. Common instruments include guarantees, credit enhancement, and subordinated or first-loss capital, which improve risk-adjusted returns for commercial lenders and long-term investors[1][3]. Where project revenues depend on user fees or payments from public utilities, bankability is strengthened by clear and enforceable revenue frameworks — such as availability-based payments or well-defined payment obligations — that reduce cash-flow uncertainty and broaden the pool of potential financiers[1]. **2.** **Strengthening project pipelines through preparation and procurement** In many developing regions, the binding constraint is a weak pipeline of well-prepared projects rather than a lack of available capital. PPP programs that invest in upstream preparation — such as feasibility studies, permitting, land acquisition, and environmental and social documentation — and that rely on standardized, transparent procurement processes reduce transaction costs and strengthen investor confidence[4]. This pipeline-building function becomes particularly important when global financing conditions tighten, as cross-border investment and project finance tend to retreat from developing economies, increasing the value of strong project preparation and procurement systems[4]. **3.** **Linking private returns to climate and resilience outcomes** PPPs allow governments to align private incentives with climate objectives by tying payments to measurable service and performance outcomes, such as availability, efficiency, or resilience benchmarks. This approach is especially relevant for climate adaptation investments, where benefits are substantial but often difficult to monetize through user charges alone[5]. Given the persistent gap between adaptation needs and available financing, outcome-based PPPs — supported by targeted public interventions where needed — can mobilize additional private capital while strengthening accountability for resilience outcomes[5][6]. **Conclusion** Public-private partnerships can significantly expand green investment in developing regions when they combine targeted de-risking, credible project preparation, and performance-based contracting linked to climate outcomes. By positioning public finance as a catalyst rather than a substitute for private capital, PPPs can scale climate-aligned infrastructure investment while preserving fiscal discipline and long-term development impact[1][7].
