Dear Dorina,

Thank you for your question. Indeed in developing countries, there are often issues with the election process of the governments. That of course is one of the barriers that climate finance copes with.

In such occasion, even though the government may not have been elected based on UN principles, however, that does not imply that they government does not wish to have more private capital flow into the country. It may be harder to convince the public stakeholders, nonetheless they do understand the necessity to make changes.

Moreover, it is in cases like these where the multilateral agencies provide the Political Risk Guarantee. They understand the risks that exist in such political environment and thus they offer insurance products that mitigate the risk for the project developer.

If a government ( democratic or not) is not willing to make any changes towards the creation of a conducive environment, than the investors will not be interested in. It is therefore up to other organisations to promote such policies.

I hope this answers your question.

Kind regards,

Nicolas

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