Exploring the role of international development banks in promoting green financing mechanisms

Akomolehin, Olugbenga Francis (2025) Exploring the role of international development banks in promoting green financing mechanisms. World Journal of Advanced Research and Reviews, 26 (2). pp. 2498-2513. ISSN 2581-9615

This research examines International Development Banks (IDBs) while they implement green financing programs to support renewable energy projects and climate adaptation along with energy efficiency projects in developing regions. The study examines three geographic blocs to show how IDB strategic initiatives lead to both successful and unsuccessful outcomes. IDBs develop environmental emissions reduction and community resilience development through combined financial approaches that incorporate both green bond programs with concessional loans as well as blended finance to produce employment opportunities while advancing economic growth. Policy-makers play a vital role in determining IDB effectiveness through their commitment to ensure frictionless procedures and open governance systems with appropriate mechanisms to engage the private sector. IDBs operate differently from private sector financial institutions through public funding that lowers private investment risks and expenses for multiple business sectors across various industries. The evaluation methods focusing on success track two essential factors: environmental emission cuts alongside economic growth and social welfare advancement for assessing effects. Significant achievements by IDBs persist despite ongoing challenges related to limited funding availability and regulatory barriers affecting their operational effectiveness. The research provides three essential recommendations that stress public-private relations enhancement and institutional proficiency development and technological systems for overseeing projects. Accurate government regulations established according to international climate targets should force private companies to either make strategic investments or enhance their sustainability reporting and risk management programs. Wider implementing measures will enhance the effectiveness of IDBs to drive transformative growth in green finance.