Private climate finance is expected to play an important role, both in the context of the USD 100 bn climate finance commitment, as well as more broadly, whilst also presenting an opportunity for the private sector and investors. Thus, the key requirement is to strike the right balance between investors’ appetite for risk and reward. Effectively mobilising private investments to finance climate-friendly and/or climate resilient activities therefore requires establishing enabling environments and domestic investment conditions that incentivise and align investment opportunities with the need for climate finance.