The Paris Financial Centre supports the G7’s priority on financing development

Through a declaration coordinated by the Institut de la Finance Durable (IFD), our financial community is calling on G7 governments and regulators to take concrete steps to unlock private capital for emerging markets and developing economies (EMDEs).

The numbers speak for themselves: global financial assets exceed $480 trillion, yet less than one-fifth flow to EMDEs. For every public dollar of climate finance committed in these markets, only ~$0.50 of private capital is mobilised on average — compared to nearly $1 in high-income countries. The problem is not a lack of capital. It’s structural barriers.

The Paris Financial Centre Declaration calls for action on three fronts:

• Quick fixes to the prudential & regulatory framework — so that capital requirements genuinely reflect the risk-reducing impact of public development banks support, rather than penalising banks for EMDE exposures.
• Open risk data infrastructure — through expanded disclosure by GEMs and development finance institutions of granular default and recovery data, enabling private investors and rating agencies to price EMDE risk accurately.
• Contribution to the Catalytic Capital Repository (CCR) — a shared, open-access platform developed by GFANZ and the Global Capacity Building Coalition, with IFD and BCG, to give private investors clear, comparable and actionable information on available catalytic instruments.

None of these require deep systemic reform. The Paris Financial Centre stands ready to play its part and calls on G7 governments to send a clear signal.