Banks and financial institutions looking to make climate-linked investments in developing countries may be wary of the potential risks attached to some of the poorest jurisdictions around the world.

Looking to bridge the climate finance gap between the global north and the global south, a group of institutions that include Japanese bank MUFG, Canadian financial solutions firm FinDev and a consortium of UN partners have launched Gaia, a $1.5bn platform designed to bring in climate-linked investments to support developing countries.