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Similar to Social Impact Bonds, Development Impact Bonds are a performance-based investment mechanism, but they are specifically aimed at achieving development goals in low-resource countries. Investors provide upfront financing for development programs and are repaid by donors or host country governments if the programs meet pre-agreed outcomes.

Microfinance includes financial services like loans, savings, insurance, and fund transfers to entrepreneurs and small businesses lacking access to banking. Its role is to enable low-income individuals to become self-sufficient and to help lift them out of poverty.

Blended Finance is the strategic use of development finance for the mobilization of additional finance towards sustainable development in developing countries. It mixes public, private, and philanthropic funds to support development.

Sovereign Wealth Funds are state-owned investment funds that invest in real and financial assets such as stocks, bonds, real estate, precious metals, or in alternative investments such as private equity fund or hedge funds. SWFs stabilize the economy and generate wealth for future generations.

Official Development Assistance consists of public funds provided by donor countries to promote economic development and welfare in developing nations. ODA operates with two main objectives: the economic development and improvement of living conditions.

Climate Finance refers to financing that seeks to support mitigation and adaptation actions that will address climate change. It includes financial resources from the public and private sectors and is integral to driving action on climate goals set forth by global agreements.

Foreign Direct Investment is an investment made by a firm or individual in one country into business interests located in another country. FDI is critical for developing countries due to the transfer of capital, skills, and technology, which can lead to economic growth.

Guarantees in development finance are financial mechanisms provided by third parties, usually government or multilateral development banks, to assure a lender of repayment of an investment. These guarantees encourage foreign investment by mitigating risk.

Green Bonds are designed to finance or re-finance projects that have positive environmental and/or climate benefits. The role is to support initiatives in renewable energy, energy efficiency, pollution prevention, and other sustainable projects.

Debt-for-Nature Swaps involve the cancellation of national debt in exchange for a commitment to fund local environmental conservation measures. It reduces a developing country's debt burden while encouraging sustainable environmental practices.

Social Impact Bonds are contracts with the public sector or governing authority, where it promises to pay for improved social outcomes that result in public sector savings. The role is to fund projects with a social goal through private investment, where investors are repaid based on the success of the project.