Blended Finance solutions to mobilize private investment at scale to climate mitigation, climate adaptation and ecosystems/biodiversity 

Capitalising on timing of Biodiversity COP16 in Cali and climate COP29 in Baku.

Blended finance that mobilizes private investment has emerged as the critical strategy to address and overcome the investment gap for climate action, and more recently seen as a prospective solution for biodiversity restoration and nature-based solutions. The Climate Policy Initiative and other experts estimate annual climate investment needs to achieve the Paris Agreement in Developing Countries at $1.5-2 trillion, but actual investment happens at only 15-20% the level required.

Mobilization of private investment through blended finance, combining public and private sector funds, is crucial. Good practice blended finance can increase project viability, improve project-level investability and improve portfolio-level investability – creating debt and equity investments that meet the fiduciary and regulatory investment obligations of investors.  It is critical for Developing Countries where 90% of countries are rated non-Investment Grade. The OECD and Convergence identify the amount of private investment mobilized for climate has been increasing, but far below amounts required. Blended finance has demonstrated mature solutions for climate mitigation projects with steady revenues (e.g., renewable energy generation), and is in the process of demonstrating success for climate adaptation, nature based solutions and biodiversity. Most experts agree mobilizing investment at scale and much faster pace is required to tackle the climate and nature crisis.

Join us for this webinar as we showcase existing solutions and discuss how to mobilize private investment at scale. The session will also demonstrate how blended finance can support COP29 objectives as governments are to set a new post-2025 finance goal to fund the (1) loss & damage fund, (2) scale climate finance to reach the 30% global renewables targets and (3) climate and nature technology transfer. We will also look at how private sector involvement is key to bringing innovation and efficiency gains to projects, making them more cost-effective.

We recommend these documents as background reading prior to the panel:
Global Landscape of Climate Finance 2024, Climate Policy Initiative, October 2024
State of Blended Finance Report 2024 – Climate Edition, Convergence, October 2024
Climate Finance Provided and Mobilised by Developed Countries in 2013-2022, OECD, May 2024

Learn more about the Sixteenth meeting of the Conference of the Parties to the Convention on Biological Diversity (COP 16) taking place in Cali, Colombia from October 21st – November 1st, 2024.

Learn more about the Twenty-ninth Conference of the Parties to the United Nations Framework Convention on Climate Change (COP 29) taking place in Baku, Azerbaijan from November 11th – November 22nd, 2024.

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