The UN-convened Net Zero Asset Owner Alliance released the Scaling Blended Finance discussion paper investigating obstacles to investing in climate solutions in emerging markets and arguing that blended finance vehicles can provide the necessary structures to help close the existing funding gaps in climate investment globally. Moreover, the paper lays out the potential solutions for overcoming barriers to scaling blended finance, including:
Enhancing the universe of investable projects and building capacity among all actors and stakeholders
Making private sector investment in funds eligible for official development assistance (ODA)
Pooling donor funds and standardising investment
Revising the incentives model of DFIs
Generating data points to be made available and accessible
Establishing ratings methodologies.