Most of the world seems to misunderstand why global capital is not financing the developing world’s climate transition. Standard explanations for global capital’s failure to reach developing-economy climate projects emphasize poor project quality, weak institutions and political risk. According to the Independent High-Level Expert Group on Climate Finance, emerging market and developing economies ( EMDEs, excluding China ) will have to invest some US$2.4 trillion annually in climate action by 2030. The second step is to tackle currency risk directly, as Brazil has done. Most of the world seems to be misunderstanding why global capital is not financing the developing world’s climate transition.