Blended Finance: Catalyzing Sustainable Investments in Emerging and Developing Economies

The global economy stands at the intersection of several inflection points: climate stabilization, biodiversity protection, energy transition, water and food security, resilient infrastructure, poverty alleviation, financial inclusion, and the future of human capital. Addressing these grand challenges requires an unprecedented mobilization of capital to finance innovative solutions across sectors (such as renewable energy, climate technologies, nature-based solutions, and social inclusion) and advance sustainable (economic, environmental, and social) development. However, large financing gaps persist. These gaps are most acute in emerging and developing economies (EMDEs), where high risk perceptions and capital constraints are often argued to stifle the advancement of sustainable development.