Box 1. The de-risking effect of public financing Climate projects, especially in developing countries, face implemented, such instruments can reduce the overall cost macro, market, technical and financial risks that can of the energy transition by up to 25%.31 deter private capital and drive financing costs up.29 Public risk-transferring mechanisms.29 Provided in the form of concessional finance (e.g., capital with lower-than-market Complex in Morocco, the world's largest concentrated solar power (CSP) plant.32 The 580 MW CSP plant, structured interest rates) or grants, it has a dual effect. It first provides as a public-private partnership, received a combination of reluctant to enter. It also directly lowers the financing costs of projects by lowering the cost of capital.30 This enables finance institutions. This included multilateral institutions, such as the African Development Bank (AfDB), the Clean Technology Fund, the International Bank for Reconstruction and Development (IBRD), and bilateral institutions such as the Agence Francaise de Développement (AFD), Kreditanstalt fur Wiederaufbau (KfW), and the European Commission.33 This capital structure reduced risks borne by that are better suited to take them. This risk transfer can private equity investors. In addition, the Moroccan Agency be in the form of guarantees (political risk guarantees, revenue guarantees, etc.) or mezzanine instruments such power purchase agreement (PPA), eliminating off-take risks.33 Together, these de-risking mechanisms delivered by different public entities directly provided capital, reduced potential initial losses, thus leaving private investors with a safer senior tranche.29 These de-risking mechanisms can the project's financing costs, and made it financially viable, make a project bankable (i.e., attractive to commercial lenders and investors), mobiliing private capital. Globally