The guarantee instrument isn't developed upfront but rather after a project is selected. The Mitigation Action Facility (MAF) also supports establishing national guarantee funds in emerging economies to enable the instrument's long-term sustainability. All MAF guarantees are dedicated to climate mitigation transformational in the three priority sectors: Energy, Industry, and Transport in all ODA-eligible countries globally. The guarantee is funded and primarily covers credit/commercial risks, with typical coverage between 50% and 80% of the loan principal. The higher coverage tends to be reduced after the first few years, once the clean technologies and target group gain traction in the country. The guarantees could be individual or portfolio based. The product is administered through a national development bank or fund. They are typically paired with concessional loans or technical assistance provided by MAF or other funding providers.