Development finance equities tied to renewable energy projects have gained 6.2% since January, benefiting from global climate fund inflows and accelerating project approvals across Asia and Africa. On 18 June 2025, the DFSA and UAE SFWG launched the Principles for Climate Transition Planning (the “ Principles ”). The Principles are intended to help financial institutions to develop credible, transparent and effective climate transition plans. No. DFC offers loans, makes investments, provides insurance against political risks, and helps private businesses grow in other countries. Unlike aid, this money has to be paid back. This approach helps create lasting growth and stronger economies. The sector's PD (probability of default) risk metrics have declined to 1.2%, the lowest in five years, which could justify rerating of core development finance portfolios.
