Currently a student in sustainable finance, impact investing and development at the Geneva Graduate Institute, my background combines initial academic studies in international relations with several years of professional experience in not-for-profit organisations aiming to contribute to achieving the Sustainable Development Goals (SDGs). My most recent positions dealt with partnerships with public donors, mainly articulated around grants funding.

Just a few weeks into my studies, Building Bridges was truly an opportunity to connect the dots between the professional world I come from and the sustainable finance ecosystem I’m currently discovering. Based on my former experiences, I came naturally attracted by issues related to catalytic capital and its role in supporting different investable ventures all along their development stages. On that topic and others, the different types of sessions throughout this three-day event were, in my opinion, very complementary.

During the first morning, the Summit set the scene by providing an overview of the state of sustainable finance. The following statements from high-level panellists particularly struck me: a call to “make development investable”, the need to think at “scale” and adopt a “systemic approach” (rather than only a project-based one), the necessity to “understand risks and price them”, and the importance of “measuring” impact. It was a perfect way to start these three days!

Interactive discussions and workshops later allowed both speakers and participants to engage more actively and share their experiences and ideas on practical and tangible topics. Below are my two main key takeaways, reflecting my interest in catalytic capital.

The first one is the importance of properly navigating and using the “toolbox” of sustainable finance and impact investing, in which different tools should complement one another. I learned more about this during a workshop session focusing on first-loss capital. The discussion brought together a variety of stakeholders with different perspectives on the use of first-loss capital – also referred to as “junior capital” – which was truly enlightening for someone like me who was discovering this concept. Before taking a closer look at the sustainable finance toolbox, entrepreneurs and investors should agree on what is investable and what is not. Indeed, some development activities are simply not meant to become commercially sustainable. When an activity cannot realistically generate sufficient revenue, grants may be more appropriate and can complement market-based solutions. Being clear on this from the very beginning can save time for all stakeholders involved.

For projects deemed investable, the role of catalytic capital is to enable investments that would otherwise not happen, mainly by accepting higher risks and/or lower returns than conventional commercial investors would, as defined by the Catalytic Capital Consortium (C3). Catalytic capital can therefore support both the supply side – by protecting investors against potential losses – and the demand side – by allowing new investment opportunities to emerge. During the workshop, practitioners described two main uses of first-loss capital: 1) providing enough protection for financial instruments to receive ratings acceptable to investors; and 2) protecting investors against actual losses in riskier ventures. However, participants highlighted two important caveats: actual defaults that affect first-loss capital may discourage future investors rather than reassure them, and first-loss capital may sometimes protect private investors against risks they could have taken themselves. Hence the need for robust evidence on the wider effects of first-loss capital, as emphasised around the workshop table. Practitioners also highlighted the importance of thinking about long-term and systemic change: if investors continue to perceive a sector as risky and demand the same protection for future investments, little will change. I will keep in mind that the success of first-loss capital should be better assessed, with assessments focusing not only on the amount of private capital mobilised through individual transactions, but also on its longer-term effects on investment behaviour.

My second takeaway relates to another insightful workshop, which took me beyond the use of financial tools to address the critical importance of collaboration between stakeholders across the sector of sustainable finance. As underscored by speakers and participants, the diversity of stakeholders in the ecosystem is above all a strength: different actors bring different forms of capital, expertise and risk appetite. On the other hand, different mandates and time horizons can prevent stakeholders from working together. Thus, successful collaboration requires shared values, trust and transparency throughout every stage of the working process, as well as complementary expertise. However, we also discussed that collaboration between willing professionals outside a formal framework is not sufficient: the sector needs shared infrastructure to reduce transaction costs and facilitate cooperation. In this regard, several options were mentioned: shared due diligence and investment pipelines, open data, common standards and joint platforms. A concrete example was offered by the four speakers, who shared their joint professional experience of how different forms of capital can complement each other. For instance, elea and Fourfold Foundation collaborate to provide grants to promising early-stage ventures, helping them overcome specific challenges and prepare for potential future investment. Such collaborations help create the conditions for investments to generate effective and lasting impact.

My conclusive thoughts on these two workshops reflect those I have for the whole Building Bridges event: you need the right tools and the right people to make sustainable finance efficient and its impact lasting. During these three days, I had the opportunity to develop my sustainable finance literacy: becoming familiar with the vocabulary used by the sector and its professionals, its tools and ways of working, and how all this relates (or not) to my previous field of work. But the key resource for me remains people. Having the opportunity to listen to high-level panellists while also engaging directly with experienced professionals is, in my view, the greatest added value of Building Bridges. And one that will hopefully last beyond the event. Developing replicable solutions to make development investable, mobilising capital at scale, and better measuring development impact are, for me, among the key challenges highlighted during these three fruitful days. The journey does not end here. Onwards!

Author: Maud, Master of Advanced Studies in Sustainable Finance, Impact Investing and Development

Guest Contribution: This article is brought to you in collaboration with the Geneva Graduate Institute, an Ecosystem Partner of Building Bridges 2026.

Photo Credit: Antoine Tardy

Note: The views, information, data and figures presented in Guest Contributions are those of the respective authors and do not necessarily represent views or position of Building Bridges. Information, data and figures provided by guest contributors have not been independently verified by Building Bridges.