Priority Areas

Strategic Priority Areas
In its FY24–26 strategy, MIGA set out a goal to continue to deepen its commitment across critical areas: 
strategy

Increasing engagement in IDA countries and fragile and conflict-affected situations (FCS)

IDA (low-income) countries and FCS continue to feel the effects of the COVID-19 pandemic and subsequent global shocks, reversing hard-won advancements in poverty reduction and development.

IDA (low-income) countries and FCS continue to feel the effects of the COVID-19 pandemic and subsequent global shocks, reversing hard-won advancements in poverty reduction and development. By the end of 2024, one in four developing economies is expected to be poorer than it was on the eve of the pandemic. By 2026, many of these countries will still be growing more slowly, on average, than they were in the decade before the pandemic. Per capita income growth in these economies is expected to average just 3 percent through 2026, well below the average of 3.8 percent in the decade before COVID-19.

MIGA’s commitment to IDA-eligible countries during FY24 was substantial, with guarantees totaling $3.1 billion, representing 38 percent of the total guarantee issuance. Commitments in IDA-eligible countries supported 26 projects (65 percent of total projects supported) across 15 nations in Africa and the Europe and Central Asia regions.

MIGA’s engagement in FCS was also notable, with $945 million in guarantees supporting 10 projects, representing 25 percent of the total projects supported, in five countries (the Democratic Republic of Congo, Kosovo, Mozambique, Nigeria, and Ukraine) and one regional development bank in Africa.

strategy

Increasing support for projects that address climate change

Climate finance initiatives were a significant focus in FY24, with MIGA issuing guarantees for 30 projects (75 percent of total projects) across 22 countries, supporting either mitigation or adaptation efforts. The climate finance component of the FY24 guarantees totaled $2.5 billion, representing 38 percent of total guaranteed investment supported.

Climate finance initiatives were a significant focus in FY24, with MIGA issuing guarantees for 30 projects (75 percent of total projects) across 22 countries, supporting either mitigation or adaptation efforts. The climate finance component of the FY24 guarantees totaled $2.5 billion, representing 38 percent of total guaranteed investment supported.

Notable climate projects this year included one that provides Senegal with its first 100 percent electric bus rapid transit (BRT) system and supporting a loan facility that addresses climate mitigation finance and climate adaptation projects in Botswana.

MIGA’s products have helped cross-border investors protect their long-term investments in climate mitigation and adaptation activities across diverse markets and regions. As one of the few institutions that provides long- tenor guarantees, MIGA will be instrumental in helping investors identify and address climate challenges and in fostering the lock-in of transformational climate action.

In FY24, MIGA began implementing its commitment to align 85 percent of its Board-approved operations with the Paris Agreement starting on July 1, 2023, and 100 percent from July 1, 2025. That goal was surpassed: By the end of FY24, 100 percent of new operations were assessed as aligned with the objectives of the Paris Agreement.

MIGA is committed to promoting projects that are economically, environmentally, and socially sustainable and that promise a strong development impact.

strategy

Increasing client engagement to advance gender equality

Gender equality is an urgent imperative. Crises, conflicts, and global challenges such as climate change, pandemics, natural resource scarcity, and technological transitions exacerbate inequalities between men, women, boys, and girls. The World Bank Group and MIGA recognize gender as a core priority area. The new World Bank Group Gender Strategy 2024-2030, launched in FY24, focuses on concerted action, financing, and programs at scale to support foundational well-being, economic participation, and women’s leadership.

Gender equality is an urgent imperative. Crises, conflicts, and global challenges such as climate change, pandemics, natural resource scarcity, and technological transitions exacerbate inequalities between men, women, boys, and girls. The World Bank Group and MIGA recognize gender as a core priority area. The new World Bank Group Gender Strategy 2024-2030, launched in FY24, focuses on concerted action, financing, and programs at scale to support foundational well-being, economic participation, and women’s leadership.

Gender equality is embedded in our strategy and in our client engagement. Moreover, our clients are increasingly requesting we support them on their gender journey. In FY24, all gender-flagged projects were in IDA (low-income) countries in Sub-Saharan Africa. Among these, two projects are in Fragile and Conflict-affected Situations (FCS) countries.

For example, a MIGA client in Guinea will address gender challenges in employment and digital access, and digital literacy. The actions include increasing the number of women employed in technical and digital roles, increasing women’s representation at the senior management level, and promoting women’s and underserved groups’ access to technology skills as well as telecom and mobile money services.

MIGA’s gender ambition remains focused on impact through our clients. We recognize that we have an opportunity, and a responsibility, to mobilize capital to advance gender equality.

strategy

Increasing engagement in IDA countries and fragile and conflict-affected situations (FCS)

IDA (low-income) countries and FCS continue to feel the effects of the COVID-19 pandemic and subsequent global shocks, reversing hard-won advancements in poverty reduction and development. By the end of 2024, one in four developing economies is expected to be poorer than it was on the eve of the pandemic. By 2026, many of these countries will still be growing more slowly, on average, than they were in the decade before the pandemic. Per capita income growth in these economies is expected to average just 3 percent through 2026, well below the average of 3.8 percent in the decade before COVID-19.

MIGA’s commitment to IDA-eligible countries during FY24 was substantial, with guarantees totaling $3.1 billion, representing 38 percent of the total guarantee issuance. Commitments in IDA-eligible countries supported 26 projects (65 percent of total projects supported) across 15 nations in Africa and the Europe and Central Asia regions.

MIGA’s engagement in FCS was also notable, with $945 million in guarantees supporting 10 projects, representing 25 percent of the total projects supported, in five countries (the Democratic Republic of Congo, Kosovo, Mozambique, Nigeria, and Ukraine) and one regional development bank in Africa.

strategy

Increasing support for projects that address climate change

Climate finance initiatives were a significant focus in FY24, with MIGA issuing guarantees for 30 projects (75 percent of total projects) across 22 countries, supporting either mitigation or adaptation efforts. The climate finance component of the FY24 guarantees totaled $2.5 billion, representing 38 percent of total guaranteed investment supported.

Notable climate projects this year included one that provides Senegal with its first 100 percent electric bus rapid transit (BRT) system and supporting a loan facility that addresses climate mitigation finance and climate adaptation projects in Botswana.

MIGA’s products have helped cross-border investors protect their long-term investments in climate mitigation and adaptation activities across diverse markets and regions. As one of the few institutions that provides long- tenor guarantees, MIGA will be instrumental in helping investors identify and address climate challenges and in fostering the lock-in of transformational climate action.

In FY24, MIGA began implementing its commitment to align 85 percent of its Board-approved operations with the Paris Agreement starting on July 1, 2023, and 100 percent from July 1, 2025. That goal was surpassed: By the end of FY24, 100 percent of new operations were assessed as aligned with the objectives of the Paris Agreement.

MIGA is committed to promoting projects that are economically, environmentally, and socially sustainable and that promise a strong development impact.

strategy

Increasing client engagement to advance gender equality

Gender equality is an urgent imperative. Crises, conflicts, and global challenges such as climate change, pandemics, natural resource scarcity, and technological transitions exacerbate inequalities between men, women, boys, and girls. The World Bank Group and MIGA recognize gender as a core priority area. The new World Bank Group Gender Strategy 2024-2030, launched in FY24, focuses on concerted action, financing, and programs at scale to support foundational well-being, economic participation, and women’s leadership.

Gender equality is embedded in our strategy and in our client engagement. Moreover, our clients are increasingly requesting we support them on their gender journey. In FY24, all gender-flagged projects were in IDA (low-income) countries in Sub-Saharan Africa. Among these, two projects are in Fragile and Conflict-affected Situations (FCS) countries.

For example, a MIGA client in Guinea will address gender challenges in employment and digital access, and digital literacy. The actions include increasing the number of women employed in technical and digital roles, increasing women’s representation at the senior management level, and promoting women’s and underserved groups’ access to technology skills as well as telecom and mobile money services.

MIGA’s gender ambition remains focused on impact through our clients. We recognize that we have an opportunity, and a responsibility, to mobilize capital to advance gender equality.

Innovation
Innovation makes it possible for MIGA to do more with its products, broaden its development impact, and evolve alongside dynamic investment markets in developing economies. While keeping a finger on the pulse of these markets, MIGA has cultivated innovations that will help deliver the best possible development outcomes for countries and help clients further their investment potential.
Regulatory Relief
MIGA continues to use its capital optimization product to provide regulatory relief to banks. Delivery of this product allows banks to maintain lending during challenging economic times. In addition, MIGA made significant progress in using its capital optimization product to scale up climate finance by its client financial institutions, and it plans to further expand this approach. The institution is also looking into whether a similar product can be tailored for the needs of institutional investors and insurance companies.

In FY24, MIGA provided its largest guarantee to date to Mexico. The $1.85 billion guarantee to HSBC Holdings plc of the United Kingdom (HSBC) will provide regulatory capital relief for its subsidiary in Mexico and support the financing of climate-related projects in Mexico. This was the first time MIGA provided coverage for noncash reserves. Mexican regulations permit banks to hold reserves in the form of securities or other noncash assets. In this case, the reserves primarily consisted of Monetary Regulation Bonds (BREMS). These bonds are pivotal in aiding the Central Bank of Mexico to manage the money supply and stabilize the financial system. The project is closely aligned with HSBC Mexico’s sustainability agenda by specifically targeting climate finance. It also supports the World Bank Group’s Country Partnership Framework (CPF) 2020–2025 for Mexico and MIGA’s FY21–23 Strategic Business Outlook, which emphasize leadership in climate change and market creation through the Cascade approach. The project will help HSBC Mexico scale up its sustainable finance loan portfolio.

Another major innovation of this transaction was the introduction of a “targeted asset class” regulatory relief approach for capital optimization. Unlike traditional practices, this approach focused MIGA’s guarantees on specific sectors with substantial financing gaps or priority areas, such as climate finance. In this transaction, the regulatory relief obtained through MIGA’s guarantee to HSBC was directed exclusively to HSBC Mexico for financing eligible climate finance subprojects in Mexico. HSBC intends to transfer the benefits of the freed-up capital to HSBC Mexico, which will deploy it for financing a specific asset class rather than the entire portfolio as has been the usual practice. In some cases, this approach can have the benefit of focusing the impact of MIGA’s guarantees on areas with large financing gaps and/or priority areas such as climate, gender, or SMEs. This novel method has set a precedent for underwriting future transactions.

Access to credit in the Balkan countries has historically been low despite ample liquidity and has been hindered by regulatory constraints and adverse risk appetites from parent banks. This fiscal year, MIGA issued three guarantees totaling €770 million to Raiffeisen Bank International AG (RBI) of Austria for its equity investments in its subsidiaries in Serbia, Bosnia and Herzegovina, and Kosovo. These guarantees enable heir subsidiaries to generate loan capacity in the host countries by a total of around €900 million, of which 13 percent is expected to be deployed toward climate finance–related projects and 27 percent toward SMEs. The MIGA guarantees will free up new capacity for loan growth of up to €596 million in Serbia, €175.8 million in Bosnia and Herzegovina, and €146.8 million in Kosovo. RBI Serbia, RBI Bosnia and Herzegovina, and RBI Kosovo are expected to deploy 12 percent, 6 percent, and 42 percent of the guarantee amount toward climate finance, respectively, and 27 percent, 6 percent, and 100 percent, respectively, toward SMEs.

innovation
Application to New Technologies
To support technology-driven sustainable and affordable energy sources, MIGA provided guarantees of $9 million to Oikocredit, Ecumenical Development Cooperative Society U.A., Triodos Groenfonds and Triodos Emerging Markets Renewable Energy Fund for their investments in ARC Power Rwanda Ltd., a subsidiary of ARC Power Ltd., UK. The project will be Rwanda’s first interconnected grid network, with solar generation units installed within village networks. Each unit will directly serve 25 to 30 users, including schools, health centers, local government offices, SMEs, commercial centers, business parks, and households within the villages.

The new grid network will connect approximately 30,000 new customers living in 150 villages to the Rwandan national grid for the first time, benefiting around 118,000 people. The project includes a clean cooking program, which enrolls influential women leaders as ambassadors to facilitate the adoption of the electric cooking technology among other women in the community. By matching the end-user electricity tariffs with the national grid tariffs, village households will be able to access a more sustainable and affordable energy source. This approach is significantly cheaper than tariffs under a captive mini-grid system with battery storage units.

Rwanda has ambitious plans for universal energy access, aiming to provide electricity to 100 percent of the population by the end of 2024, and with the help of MIGA guarantees this innovative hybrid model provides a clean and efficient solution in meeting that goal.

innovation
Cutting-Edge Finance
In an innovative approach, recommended by the Private Sector Investment Lab, a project to support India in achieving its climate targets by transitioning to affordable solar power showcased an “originate to refinance” model leveraging different parts of the World Bank Group. MIGA issued a guarantee of $317.5 million to Citi, Crédit Agricole Corporate and Investment Bank (Crédit Agricole CIB), and Standard Chartered Bank for their loan to the State Bank of India (SBI), one of India’s premier state-owned banks.

This collaboration between MIGA and SBI refinanced $200 million of an existing $500 million loan provided by the World Bank to SBI in 2016 for operational grid- connected rooftop solar photovoltaic (GRPV) systems. These photovoltaic installations provide clean energy and reduce GHG emissions by displacing more expensive and carbon-intensive thermal generation. The IBRD loan funds a national program to deliver the GRPV systems to commercial and industrial customers across India.

The World Bank supported SBI in a nascent sector, and MIGA subsequently brought in commercial financing once the World Bank loan operation had helped the project reach a certain level of maturity. This project responds to calls from the G-20 and others for multilateral development banks (MDBs) and MIGA to collaborate on transferring portfolio risk from MDB balance sheets to the private sector using MIGA’s insurance products and reinsurance capacity. This collaboration is one of the first examples of MIGA and the World Bank working in concert to free up lending capacity for the Bank.

The World Bank program enabled SBI to partner with MIGA, attracting international commercial lenders and private finance directly to the GRPV program. This financing paves the way for mobilizing private investment in energy solutions for India.

This fiscal year, MIGA issued its first trade finance guarantee against losses resulting from the failure of a sovereign to make payments related to trade finance transactions. This innovative guarantee to Rand Merchant Bank Division covers a trade loan facility of up to €95 million. The bank will be protected against the risk of nonpayment by the government of Côte d’Ivoire for one year. The short-term revolving loan facility will help enhance Côte d’Ivoire’s resilience in dealing with the lingering strains caused by the COVID-19 pandemic and the current global inflationary environment. The combined impact of the two has created a need for short-term liquidity, working capital, and trade finance facilities to support the Ivorian government’s critical developmental needs. With the MIGA-supported facility, Côte d’Ivoire will be able to continue executing its strategic plan to meet development goals in a challenging global setting.

Also in FY24, MIGA successfully executed a complex transaction to provide more power to the people of the Democratic Republic of Congo. MIGA provided a guarantee of $50.3 million to Congo Energy Solutions Limited (CESL), which plans to expand its operations across the Democratic Republic of Congo to provide energy to up to 5 million people by 2025. MIGA mobilized the support of the IDA Private Sector Window and MIGA’s Renewable Energy Catalyst Trust Fund for the guarantee. IFC’s financing package, committed in July 2023, also included a subordinated quasi-equity investment through the Finland-IFC Blended Finance for Climate Program.

innovation
Partnerships
Leveraging MIGA’s Partnerships for Greater Development Impact
Expanding collaboration that encourages productive use of political risk insurance is essential for unlocking material private capital, which in turn contributes to achieving the Sustainable Development Goals, boosting shared prosperity, and ending extreme poverty. To this end, MIGA works to enhance coordination with international finance institutions and industry partners and across the World Bank Group.
Partnerships with International Finance Institutions
MIGA works with international finance institutions (IFIs) and MDBs to leverage guarantees and mobilize private capital for development. In 2018, the G-20 Eminent Persons Group on Global Financial Governance recommended that MIGA apply its position as a global risk insurer in development finance to work with other IFIs. Since then, the institution has taken key steps with other MDBs and IFIs to help realize these recommendations.

MIGA works with international finance institutions (IFIs) and MDBs to leverage guarantees and mobilize private capital for development. In 2018, the G-20 Eminent Persons Group on Global Financial Governance recommended that MIGA apply its position as a global risk insurer in development finance to work with other IFIs. Since then, the institution has taken key steps with other MDBs and IFIs to help realize these recommendations.

In September 2023, MIGA and IDB Invest, the private sector arm of the Inter-American Development Bank Group (IDB), announced a historic four-year partnership to mobilize more private sector capital in Latin America and the Caribbean as well as to combine and deploy risk-shifting and financing solutions in the region. The cooperation agreement calls for regular engagement between the two institutions to develop a shared pipeline of projects. This will expand the number of bankable projects and deepen the relationship between the two institutions and potential private sector investors. The collaboration is expected to significantly impact the region’s development, recognizing the crucial role of the private sector in driving economic growth and reducing poverty. The agreement was paired with a memorandum of understanding between the World Bank and IDB to boost support for net-zero-deforestation efforts in the Amazon, strengthen the Caribbean’s resilience to natural disasters, and bridge the digital-access gap across Latin America and the Caribbean.

During the World Bank Group and International Monetary Fund Annual Meetings in October, MIGA, the Eastern and Southern Africa Trade and Development Bank, and the OCP Group signed a memorandum of understanding that will enhance collaboration in addressing agriculture and food security challenges in Africa. The agreement aims to identify suitable areas for deploying MIGA’s risk mitigation instruments and a willingness to collaborate in trade finance transactions, using MIGA’s guarantees for the importation of strategic commodities, including fertilizers, in Africa.

As part of MIGA’s outreach to promote more FDI in developing member countries, MIGA is convening stakeholders on a regional basis for candid roundtable conversations, with the view of improving investment conditions and increasing cross-border investments. The in-person roundtables are cohosted with a member country in various regions in Africa, Asia, and the Caribbean. In September 2023, MIGA, in collaboration with IFC and Jordan, hosted the third event in the series: a roundtable in Amman aimed at boosting FDI in Jordan and Iraq. The gathering brought together high- level officials and private executives to discuss project evaluation processes and ways to create favorable investment conditions.

partnership
Industry Partnerships
Partnering with others in insurance and development finance is essential for delivering results on the ground. MIGA’s Executive Vice President serves as co-chair of the steering committee of the Insurance Development Forum, a public-private partnership that brings together private and public insurance companies to optimize the use of insurance to build greater resilience. MIGA is also a member of the Berne Union of global export credit and investment insurance providers. The Berne Union actively facilitates cross-border trade by supporting international acceptance of sound principles in export credits and foreign investments.

In July 2023, MIGA signed a memorandum of understanding with the International Solar Alliance (ISA). ISA is a treaty-based collaborative platform that allies more than 100 signatory countries for increased deployment of solar energy technologies as a means for bringing energy access, ensuring energy security, and driving energy transition globally. The agreement paves the way for MIGA to help ISA deliver its three strategic pillars of programmatic support, analytics and advocacy, and capacity building, recognizing that promoting the expansion of renewable energy is a strategic priority for MIGA and an area where MIGA has long-standing experience.

In December 2023, MIGA and the International Renewable Energy Agency (IRENA) signed a collaborative partnership agreement to enhance capital mobilization to scale up the implementation of renewable energy and energy transition projects. MIGA is now a partner of the Energy Transition Accelerator Financing (ETAF) platform, a climate finance mechanism managed by IRENA. ETAF facilitates climate finance projects that advance global energy transition in IRENA member countries.

In March 2024, MIGA, with the International Law Institute (ILI), delivered capacity-building workshops in Kigali, Rwanda, and Dodoma, Tanzania, focused on political risk insurance in the context of public-private partnerships. Government officials participating in these workshops enhanced their understanding of the insurance and its role in attracting private capital for infrastructure development.

In May 2024, MIGA and Tokio Marine & Nichido Fire Insurance Co., Ltd. (TMNF), the largest non-mutual private insurance company in Japan, signed a cooperation agreement to promote FDI in developing countries. The three-year strategic partnership leverages the expertise of both organizations to catalyze sustainable economic growth and development. The agreement facilitates investment by providing guarantees, co-insurance, and reinsurance for projects in developing countries. MIGA and TMNF will collaborate to identify and support joint projects and combine their respective expertise, providing comprehensive support for investments.

In June 2024, at the Ukraine Recovery Conference 2024, MIGA signed a memorandum of understanding with KUKE, the official export credit agency of Poland, to support and encourage trade and FDI by Polish companies in Ukraine and other countries. The agreement provides a framework for cooperation on projects through joint insurance, parallel insurance, and reinsurance arrangements. This agreement reflects Poland’s strong desire to support Ukraine’s reconstruction and MIGA’s strategy of partnering with public sector insurers given the lack of private market insurance for war risks. The cooperation builds on the agreement between the U.S. International Development Finance Corporation (DFC) and MIGA to collaborate on insuring projects in Ukraine. DFC and MIGA have partnered to co-insure a manufacturing project in Ukraine, each entity covering approximately $25 million against political risks, including war and civil disturbance.

This year, MIGA and IFC signed three-year cooperation agreements with Nippon Export and Investment Insurance (NEXI), the official export credit agency of Japan, to promote FDI in developing countries. The organizations share expertise and resources to identify prospects for joint projects, including conducting joint due diligence missions, marketing efforts, and training programs to enhance efficiency, impact, and speed.

Knowledge Partnership
In April 2024, MIGA and the Financial Times partnered to launch a new awards program to promote ground- breaking, long-term solutions to development challenges in Africa. The Africa Sustainable Futures Awards recognize innovative and financially viable projects and initiatives that provide transformative solutions to some of the biggest development issues facing the continent. The awards focus on entrepreneurship, innovation, and investment that can provide access to clean energy and digital connectivity and ensure urban infrastructure and natural ecosystems remain resilient to climate change. The program also highlights the importance of gender equality and inclusion in boosting development.
partnership
Environmental and Social Sustainability at MIGA
MIGA believes that an important component of achieving positive development outcomes is the environmental and social (E&S) sustainability of its projects, which MIGA expects to achieve through the application of the MIGA Policy on Environmental and Social Sustainability and the Equator Principles, a comprehensive set of E&S performance standards widely accepted in the financial sector.
Actions to ensure E&S sustainability integration at MIGA:

Prescreening all projects for E&S impact

Gathering development effectiveness indicators from clients

Applying MIGA’s Impact Performance Assessment and Comparison Tool (IMPACT) framework to assess a project’s expected development impact

Ensuring that projects meet the MIGA Performance Standards on E&S Sustainability

Verifying E&S impact through ex post evaluations

Assessing climate risk

MIGA helps investors raise the bar on E&S objectives in several ways:

Ensuring that investments meet vigorous and internationally recognized standards

Working with clients to continually monitor and report on E&S impacts

Allowing clients to enter markets they otherwise would not have been able to reach, which can bring high development returns

partnership
Integrity
Integrity and reputational risk management are key to MIGA’s role as a development partner. MIGA considers integrity and reputational risk in its clients and projects, subscribing to the World Bank Group’s Anti-Corruption Guidelines, which identify fraud, corruption, collusion, coercion, and obstruction as major impediments to development and as sanctionable practices.
MIGA’s Integrity Team conducts due diligence as part of business development and underwriting and monitors projects in the portfolio for potential emerging integrity or reputational risk flags. In this work, MIGA uses on- site evaluations, market soundings, experience with the client, World Bank and IFC local knowledge, and desktop resources, including proprietary databases. In FY24, MIGA continued to share integrity best practices through collaboration with other World Bank Group members and development partners as well as through participation in various integrity-focused forums.
MIGA’S FY24 Climate-related
Financial Disclosures Report
This report is MIGA’s fourth disclosure under guidelines recommended by the Taskforce on Climate-Related Financial Disclosures (TCFD), and MIGA is issuing the report as part of the MIGA Sustainability Report and MIGA Annual Report. The report highlights our efforts and demonstrates our commitment to enhancing the Agency’s climate and sustainability-related financial disclosures as we explore alignment with the standards of the International Sustainability Standards Board starting with the FY25 report. It reflects MIGA’s approach and progress toward managing climate change–related risks and opportunities in FY24 (July 1, 2023–June 30, 2024), coinciding with MIGA’s fourth year under the World Bank Group Climate Change Action Plan 2021–2025 (CCAP).
governance

Governance

strategy

Strategy

risk

Risk
Management

targets

Metrics and
Targets

The World Bank Group continues to be the largest financier of climate action among the multilateral development banks (MDBs) for low- to middle-income countries. The Bank Group stands at a critical juncture as it undergoes an evolution, underscoring the importance of tackling climate change in realizing its mission to create a world free of poverty on a livable planet. In this context, MIGA is deepening its collaboration with IFC and the World Bank to respond to climate and development needs with speed and scale under an enhanced One World Bank Group approach. Its guarantees continue to de-risk and mobilize private capital for transformative interventions in developing countries and emerging markets, including in some of the most fragile and conflict-affected regions.

In FY24, MIGA supported projects that focused on expanding access to renewable energy, accelerating the adoption of low-carbon transportation infrastructure, and enhancing climate-resilient infrastructure. MIGA has taken the lead on the Guarantee Platform, which was launched on July 1, 2024. This platform aims to develop new and innovative guarantee products that facilitate increased private sector involvement in tackling critical development challenges and climate- related issues.

MIGA is also strengthening its partnerships with the broader MDB community, the private sector, and other stakeholders to deliver climate action that has impact, recognizing that there is a rapidly narrowing window for the world to cut emissions and avoid the worst impacts of climate change.

The report discloses MIGA’s climate action results and is organized around four core elements:(a) governance, (b) strategy, (c) risk management, and (d) metrics and targets.

Governance

FY24 Highlights

At COP28, the World Bank Group President announced a new climate finance target, committing to direct 45 percent of the Bank Group’s annual financing to climate- related projects for the fiscal year that runs from July 1, 2024, to June 30, 2025.

FY24 marked the first year of MIGA implementing its commitment to align 85 percent of its new operations with the goals of the Paris Agreement starting on July 1, 2023, and 100 percent from July 1, 2025. This target was surpassed with 100 percent of new operations assessed as aligned with the goals of the Paris Agreement in FY24. A Paris Alignment Committee was convened for complicated projects where assessments entailed extensive technical peer review.

A new leadership role—head of sustainability reporting— was established with the aim of enhancing MIGA’s focus on sustainability and transparency in reporting practices.

FY24 ushered in a new budget process that emphasizes synchronized budget planning between MIGA, IFC, and the World Bank as well as several new World Bank Group–wide financial reporting arrangements. These changes are designed to enhance efficiency and amplify the delivery of solutions that address both climate change and broader development goals.

All aspects of MIGA’s climate business and related protocols are overseen by MIGA’s Executive Vice President (EVP), who reports to the President of the World Bank Group. MIGA’s Board of Directors are responsible for approving all MIGA operations and policies. Vice President & Chief Finance, Risk, Legal and Sustainability Officer, reporting to MIGA’s EVP, oversees, among other departments, the Economics and Sustainability Department, which houses the Climate Analytics Unit. The Climate Analytics Team is responsible for climate finance accounting; Paris Alignment assessments; GHG emissions accounting; support of the development of climate-related internal and/or external frameworks, policies, and guidance materials on salient climate-related thematic areas; development of new MIGA products to foster low- carbon and climate-resilient investments; analysis and reporting on MIGA’s climate business; monitoring of MIGA’s portfolio of projects to ensure climate action commitments made at the project approval stage by MIGA’s clients are being adhered to; contributing to World Bank Group climate analytics and strategic initiatives; and collaboration with MDBs through technical working groups on topics like climate mitigation finance, climate adaptation finance, Paris Alignment, Article 6, climate metrics, policy, and country support.

integrity
Strategy

FY24 Highlights

On February 28, 2024, the World Bank Group announced a major overhaul of its guarantee business, focusing on simplifying processes, enhancing accessibility, and improving execution. As of July 1, 2024, all Bank Group guarantee products are housed on the Guarantee Platform, which aims to boost the World Bank Group’s annual guarantee issuance to $20 billion by 2030, prioritizing climate action in FCS, developing, and emerging economies.

A Knowledge Compact for Action, launched in April 2024, seeks to empower all World Bank Group clients—public and private—by systematically making the latest development knowledge available to respond effectively to increasingly complex development challenges compounded by climate change.

Starting on July 1, 2024, the World Bank, IFC, and MIGA will appoint a single World Bank Group country manager or resident representative in select countries to accelerate the development of integrated solutions for climate and development that spans both the public and private sectors, leveraging the full breadth of Bank Group knowledge and experience to amplify our collective impact.

MIGA is moving more staff to the field while optimizing the positioning of existing staff to be even more responsive to clients and partners. It is streamlining operational processes expected to support speed and delivery scale.

MIGA has signed cooperation agreements with several MDBs and partner institutions to scale up the use of political risk insurance to jointly tackle climate challenges, including with the Inter-American Development Bank, African Development Bank, and the International Renewable Energy Agency.

MIGA approved its first transaction that aligns with the G-20 Independent Expert Group’s recommendation that it use originate-to-distribute models to mobilize private finance for alleviating capital constraints at other MDBs. MIGA’s guarantee will cover a non-shareholder loan by the guarantee holders—Citibank NA, among other banks—to the State Bank of India (SBI) against the risk of non-honoring financial obligations by a state-owned enterprise (SBI) for $317.5 million with a tenor of 10 years. The MIGA-covered loan will refinance $200 million of an existing $500 million World Bank loan for operational grid- connected rooftop solar photovoltaic panels installed by commercial and industrial consumers nationwide.

Other product-related innovations include modifications to MIGA’s existing offerings, such as the provision of partial coverage for expropriation risks, extending the use of capital optimization beyond cash reserves, and issuing trade finance guarantees for trade loans for the first time. These innovations provide additional opportunities for MIGA to support greener and climate-resilient economies.

MIGA is developing a template letter of authorization for carbon credits as it prepares to expand its product offerings to support the scale-up of emerging carbon markets, aiming to drive significant reductions in greenhouse gas (GHG) emissions by mobilizing private sector investment in low-carbon projects.

The CCAP aims to integrate climate with development and advance the World Bank Group’s Green, Resilient, and Inclusive Development (GRID) objectives by focusing on people, natural capital, and partners. The CCAP reflects the Bank Group’s ambition to support its public and private sector clients to maximize the impact of climate finance, aiming for measurable improvements in climate adaptation and resilience and reductions in GHG emissions. The CCAP objectives include (a) integrating climate and development, and (b) prioritizing key systems transitions by identifying the largest climate mitigation and adaptation opportunities and driving climate finance and leveraging private capital to deliver the maximum results. Climate change is a priority area for MIGA, along with support for low-income (IDA-eligible) countries and countries facing fragility, conflict, and violence (FCV). MIGA’s climate strategy reflects the ambition of the commitments made in the CCAP and MIGA’s Strategy and Business Outlook FY24–26 to deepen its impact. During FY24, MIGA focused on five strategic areas for its climate business: clean energy, climate-resilient infrastructure, green buildings, low-carbon transportation, and greening financial systems across four regions. Support for these sectors is critical to ensure MIGA’s client countries align their development with low-carbon and climate- resilient pathways. To ensure intended development objectives are achieved and gains are sustained, MIGA evaluates the materiality of both physical and transition climate-related risks for all sectors and aims to define appropriate risk mitigation measures where necessary

integrity
Risk Management

FY24 Highlights

All MIGA operations were screened for physical climate risk using MIGA and World Bank Group climate risk screening tools.

All Paris alignment assessments incorporated transition and physical climate assessments. For projects where gaps on alignment were identified, MIGA agreed with the client(s) to implement risk mitigation measures to ensure that projects are on a pathway for alignment with the goals of the Paris Agreement, resulting in all operations being assessed as Paris aligned.

MIGA has developed internal guidance to estimate its direct and indirect exposure to fossil fuels and report to the MIGA Management Team. MIGA does not provide new guarantees for projects related to upstream oil and gas or for projects that directly finance/support universally non-Paris-aligned activities, which include the mining of thermal coal, electricity from coal, extraction of peat, and electricity from peat. Under the Green Equity approach, MIGA will not provide guarantees to financial intermediaries that will finance new coal-related projects. MIGA requires clients to have a plan to phase out their investments in coal-related activities over an agreed period, but no later than 2030.

In assessing the materiality of climate change risks, MIGA works with its clients to evaluate climate risk sources and risk vectors for climate-sensitive sectors. MIGA adopts a bottom-up approach, which is location, context, and time specific and focuses on past, present, and future climate-related vulnerabilities. The assessments include both acute hazards (for example, extreme events such as floods, heat waves, fires, and tropical cyclones) and chronic hazards (for example, sea-level rise, changing precipitation and temperature patterns, and water scarcity), which are evaluated over multiple future time horizons and global warming scenarios.

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Metrics and Targets

FY24 Highlights

The World Bank Group and other MDBs launched the MDB Common Approach to Measuring Climate Results as a framework for measuring, defining, and linking global progress on climate adaptation and mitigation with MDB results. Cross-MDB collaboration is under way on developing common climate results metrics.

The World Bank Group launched a new Corporate Scorecard that will capture the impact of its work, such as its support for scaling low-carbon and climate-resilient solutions in client countries. Working groups consisting of technical experts from Bank Practice Groups, IFC, and MIGA are developing in-depth methodologies for each Scorecard indicator. MIGA will launch an updated platform for a Results Measurement System to capture results indicator data. MIGA monitors and reports progress on climate-related targets, commitments, and indicators tied to its operations.

MIGA continues to diversify its climate business and identify new areas for growth to meet the new World Bank Group new climate finance target of delivering 45 percent of finance for climate mitigation and adaptation by the end of FY25. In FY24, direct climate finance accounted for 38 percent of MIGA’s total guarantee investments excluding trade finance. By regional breakdown, the largest share of this issuance was provided to Latin America and the Caribbean followed by Sub-Saharan Africa. However, the results indicate that MIGA’s climate finance issuance supports low- carbon and climate-resilient projects across the global regions and sectors in which the Bank Group operates. Exposures to the various sectors during FY21–24 show that climate financing through financial intermediaries is the largest sectoral exposure, at 54 percent, followed by green buildings at 16 percent with renewable energy projects closely behind at 15 percent, and the remainder accounting for adaptation, energy efficiency, and low-carbon transport projects, respectively. The Bank Group’s new Corporate Scorecard aims to provide a comprehensive view of the impacts and effectiveness of its climate mitigation and adaptation projects in promoting low-carbon development and climate resilience. It marks a departure from the Bank Group’s input-based approach to simply tracking the flow of financing to climate projects. MIGA has also collaborated with the wider MDB community to standardize the measurement and reporting of climate results through common metrics, enhancing the transparency of climate action and facilitating learning and sharing of best practices across MDBs.

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Gender Initiatives
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MIGA’s gender initiatives are dedicated to helping clients incorporate gender-focused actions into their operations. MIGA has also strategically emphasized partnerships as part of building on the collective action of the World Bank Group to bolster its contributions to responding to the global urgency, fundamentality, and complexity of achieving gender equality.
In June 2024, MIGA, IFC, and the World Bank launched the WBG Gender Strategy 2024–2030. The strategy puts forward the bold ambition to accelerate gender equality to end poverty on a livable planet. It focuses on concerted action, financing, and programs at scale to support foundational well-being, economic participation, and leadership. The strategy involved consultations that spanned 28 countries and engaged representatives of over 600 entities from more than 110 countries. The valuable insights MIGA received from these discussions will help strengthen the implementation of the strategy.
Collaborating with Clients

MIGA’s gender approach to client engagement is focused on collaborating with clients to identify actions to advance gender equality. FY24 gender-flagged projects included the following:

Enhancing women’s employment and digital access and literacy
In July 2023, Société Nationale des Télécommunications du Sénégal SA (Sonatel SA) agreed on a gender action plan to increase the number of female employees in technical and digital roles and senior management positions. The plan also targets the enhancement of women’s access to training on information and communication technology (ICT) skills as well as to telecom and mobile money and microfinance services in Guinea.

Increasing women’s leadership in hospitality sector
In July 2023 and April 2024, Kasada Hospitality Fund LP committed to a gender action plan in their hotel projects in Rwanda and Côte d’Ivoire, respectively. The plan includes conducting gender, diversity, and inclusion training for hotel employees and setting a 50 percent target for women’s managerial representation.

Supporting women’s employment and leadership in renewable energy sector
In February 2024, MIGA guaranteed investments in Konexa Solar 1 Ltd., a commercial and industrial electrification project in Nigeria. Konexa has agreed to several gender- related interventions concerning women as employees and women as leaders, allowing women to benefit from direct employment and leadership opportunities.

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Strengthening MIGA’s Partnerships to Boost Gender Equality
In June 2024, MIGA partnered with the Insurance Development Forum (IDF) and the Geneva Association to cosponsor the event “Inclusive Insurance: Accelerating Gender Equality in Emerging Markets,” hosted by Lloyd’s. This event convened leaders from the insurance industry to discuss strategies for integrating gender considerations more comprehensively into their operations and products, aiming to foster inclusive and resilient growth in emerging markets. The event specifically explored how political risk insurance and credit enhancement can be leveraged to support gender equality.

MIGA also embarked on a new partnership with the Financial Alliance for Women (FAW), a global consortium of financial institutions driving women’s wealth creation. The partnership will strengthen MIGA’s support for clients in the finance and capital markets sector through access to peer learning and knowledge products. In addition, MIGA became an implementing partner of the Umbrella Facility for Gender Equality (UFGE), alongside IFC, World Bank Gender Innovation Labs, and Global Practices. The partnership will enable MIGA to access funding to produce evidence-based knowledge products to support the delivery of key gender-smart client solutions. Finally, on International Women’s Day, MIGA participated in the World Bank Group’s “Accelerating Gender Equality Together” event, which highlighted MIGA’s efforts with clients on gender issues and how it leverages guarantee instruments to contribute to advancing gender equality.

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Gender Leadership Award
MIGA’s Gender Leadership Award, now in its ninth year, recognizes senior managers with a proven track record of furthering the cause of women’s advancement and gender equality in business while contributing to the mission of the Bank Group to end extreme poverty and boost prosperity on a livable planet. The award is presented annually on International Women’s Day.

This year’s award was presented to Ginette Borduas, partner and head of environmental, social, and governance (ESG) and sustainability at Meridiam. Under Ms. Borduas’s leadership, Meridiam has developed new and innovative indicators to track and monitor the impact of every one of its projects from the construction site to the boardroom. Diversity at large, and gender equality more specifically, has been one of Meridiam’s sustainability and strategic pillars since 2020. And its concrete contribution to the United Nations Sustainable Development Goals is measured and reported in its annual impact reports.

Following Meridiam’s long-standing mission and its CEO’s vision regarding ESG and impact, Ms. Borduas was recognized for her dedication toward a true balance between maximizing effectiveness and minimizing environmental and social impact of large-scale transformational infrastructure projects. Ms. Borduas ensures that socioeconomic and environmental challenges that may adversely impact women are identified and assessed, and that project designs consider implementing activities to address inequalities.

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