How Blended Finance Can Support Climate Transition in Emerging and Developing Economies

This IMF blog post discusses how blended finance can play a crucial role in supporting climate transition in emerging and developing economies. It highlights the importance of leveraging private capital through mechanisms like equity finance and impact investing to accelerate decarbonization and build climate resilience. The authors emphasize the need for innovative financial solutions to bridge the funding gap for climate action, offering insights into policy considerations and effective implementation strategies to mobilise investment.