Blended Finance

This overview from Convergence defines blended finance as the strategic use of development finance and philanthropic funds to mobilise private capital investment in emerging and frontier markets. It explains the core concept: concessional capital is used to de-risk investments and improve their risk-return profiles, thereby attracting commercial investors to projects delivering positive social and environmental impact. The piece outlines the key stakeholders—including DFIs, MDBs, foundations, and private investors—and illustrates how this collaborative approach helps to bridge the significant financing gap for the Sustainable Development Goals (SDGs).

Advancing Development Through Blended Finance

This white paper outlines Finance in Motion’s approach to advancing development through blended finance, combining commercial returns with social and environmental impact in emerging markets. Their investment portfolio spans over €4 billion across diverse themes, complemented by capacity building and technical assistance to ensure impact delivery and risk management. It details how public investors can leverage scarce funds to catalyse private investment and multiply their impact, opening new business opportunities in frontier markets.

A New Way of Doing Business: Partnering for Peace and Sustainable Development

This paper discusses how revitalizing global partnerships is crucial for sustainable development and peace, particularly in achieving the 2030 Agenda. It highlights the necessity of collaboration among governments, the private sector, and civil society to mobilise resources, technology, and capacity building. The report emphasizes the importance of policy coherence and multi-stakeholder partnerships to ensure no one is left behind in the journey towards development goals, addressing issues like external debt in developing countries.

Why ‘blended Finance’ Could Help Transitions to Sustainable Landscapes: Lessons From the Unlocking Forest Finance Project

This paper explores how blended finance models can facilitate transitions to sustainable landscapes by addressing the mismatch between private impact investors and sustainable land use investments. Drawing lessons from the Unlocking Forest Finance project, it discusses combining commercial, public, and philanthropic funding sources to finance initiatives like forest conservation and restoration. The study highlights the potential of blended finance to scale investments that generate both financial returns and positive environmental and social impacts.

The Utilisation of Social Finance Instruments by the Not-for-profit Sector

This paper examines the utilisation of various social finance instruments by the not-for-profit sector, exploring how these tools can leverage economic, social, and environmental value. It discusses the increasing interest from mainstream investors in “blended value” or “triple bottom line” investing. The report emphasizes the need for a suite of financial tools, new financial intermediaries, and robust measurement metrics to capture the multifaceted impact of such investments and ensure successful implementation within the not-for-profit context.

Social Finance for Social Economy

This case study by the International Labour Organization (ILO) focuses on social finance specifically for the social economy. It investigates various sources, tools, and mechanisms of social finance that can support Social Economy Organizations (SEOs). The paper likely explores how these financial instruments can enable SEOs to achieve their social missions, grow their impact, and contribute to sustainable development. It provides insights into tailoring financial solutions to the unique needs of the social economy sector.

Use of Social Impact Bonds in Financing Health Systems Responses to Non-communicable Diseases: Scoping Review

This scoping review examines the application of Social Impact Bonds (SIBs) as a financing mechanism for health systems’ responses to non-communicable diseases (NCDs). It investigates how SIBs are structured to link funding to specific health outcomes, thereby incentivizing effective interventions. The authors analyse the existing literature to understand the promises, challenges, and evidence regarding the effectiveness of SIBs in improving health outcomes for NCDs globally.

Social Finance Annual Report

This case study is the ILO’s Social Finance Annual Report for 2021. It details the organization’s efforts and achievements in promoting financial inclusion, developing insurance mechanisms, strengthening institutions, and fostering market development within the social finance sphere. The report highlights various initiatives aimed at expanding access to financial services for vulnerable populations and supporting sustainable livelihoods. It provides a comprehensive overview of the ILO’s strategic approach and impact in social finance.

Impact Evaluation in Early Stage Impact Investing

This case study examines the challenges and opportunities associated with impact evaluation in early-stage impact investing. It discusses various assessment methodologies and their applicability to nascent ventures seeking to generate both financial and social returns. The paper provides insights into how early-stage investors can effectively measure and demonstrate the impact of their investments, fostering accountability and learning in a rapidly evolving field.

Microfinance for Decent Work: Organization and Responsibilities of the Social Finance Programme (sfp)

This report details the organization and responsibilities of the International Labour Organization’s (ILO) Social Finance Programme (SFP), focusing on its role in promoting decent work through microfinance. Authored by Juan Somavia, it outlines the program’s structure, policy issues addressed, and its efforts to integrate social and labor considerations into financial services for vulnerable populations. The document highlights how microfinance can be a tool for economic empowerment and social development, aligning with the ILO’s mandate for social justice.
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