The world is racing against time to finance the transition to a low-carbon economy, yet less than 2% of global philanthropic capital is directed toward climate solutions. Meanwhile, institutional investors control trillions in assets but hesitate to fund green infrastructure in emerging markets, citing high risks and fragmented markets.

This chapter presents the Green Development and Investment Accelerator (GDIA) – a bold new mechanism that leverages philanthropy to de-risk investment opportunities, lower capital costs, and mobilize large-scale private finance for climate action. By integrating philanthropy into a structured five-step de-risking process, GDIA aims to align policies, optimize sectoral coordination, and scale investible projects for institutional investors. A call to action for foundations, policymakers, and private investors, this chapter argues that philanthropy’s greatest impact lies not just in grants, but in unlocking billions for climate finance.

The global financing gap for sustainable development is widening, demanding innovative solutions. This chapter explores how philanthropy can unlock private capital through blended finance and catalytic capital, ensuring critical priorities – from climate action to poverty reduction – receive the funding they require. As emerging markets face investment shortfalls, philanthropy’s risk-taking potential can de-risk projects, attract institutional investors, and drive systemic change.

Drawing on insights from the OECD and global experts, this chapter highlights the transformative power of public-private-philanthropic partnerships and how foundations can move beyond traditional grant making to deploy impact investments, guarantees, and innovative financial tools. By strategically aligning resources across sectors, philanthropy can bridge capital markets and the SDGs, catalyzing investments that balance financial returns with meaningful social and environmental impact and ultimately redefining its role as a driving force for global change.

This chapter revisits the challenges with which the AML regime is fraught and recasts them in a new light. The chapter begins by addressing law enforcement responses to money laundering, namely the prosecution of money launderers and the confiscation of proceeds of crime. It proceeds to discuss regulatory responses, with a focus on the tensions they entail, namely exclusion versus surveillance, exclusion versus the presumption of innocence and surveillance versus privacy. It then explores the challenges presented by the misalignment between law enforcement priorities and private-sector compliance efforts, including defensive reporting, derisking, the displacement effect and tick-box compliance. The chapter then outlines potential solutions, including a modified reporting regime, public–private partnerships, privacy- enhancing technologies, and the implementation of a risk-based approach. The last substantive topic in this chapter is the special case of the legal profession, which presents particularly difficult choices in connection with both exclusion and surveillance. Finally, the conclusion brings together this analysis to elucidate the limitations of the existing FATF-mandated framework.