De-Risking Climate Mitigation Finance: Mobilizing Private Investment in Emerging Economies

Bio - Shitiz Jha is a climate finance and ESG professional working at the intersection of public policy, sustainable finance, and corporate accountability. He holds a Master’s in Public Policy from the Kautilya School of Public Policy with a specialization in ESG and Business & Government.

His experience spans think tanks, multilateral engagement, and corporate policy, including stints with the Climate Policy Initiative, Ather Energy, and YOUNGO - the official youth constituency of the UNFCCC. Shitiz has represented India at COP29 and the World Bank Youth Summit 2025, contributing to negotiations on climate finance and Global South priorities.

His work focuses on enabling private capital flows into climate mitigation, with a deep interest in Climate Finance, ESG regulation, and sub-national climate action. He bridges grassroots policy implementation with strategic finance, aiming to make emerging economy transitions both equitable and investment-ready.

Project Outline - In his capstone, Shitiz Jha examines how emerging economies like India can mobilize private finance for climate mitigation by using de-risking mechanisms. The study identifies key barriers - high capital costs, policy uncertainty, market instability, and geopolitical risks - that discourage private investment. Using risk-return theory and secondary data, it evaluates tools such as blended finance, partial credit guarantees, political risk insurance, and offtake agreements.

Drawing from global examples (Brazil, Kenya, South Africa), the paper highlights best practices and compares their relevance to India’s context. It finds that while India has made progress, gaps remain in regulatory consistency, access to financing instruments, and the scale of implementation. Through a structured framework, the research proposes policy reforms, institutional partnerships, and financial innovations to reduce investment risks.

The capstone concludes with targeted recommendations - establishing a Climate Finance Regulatory Authority, standardizing green taxonomies, and scaling blended finance to help India attract more private capital and close its $120 billion annual mitigation finance gap.