Blended Finance for State-led Decarbonization: How Public Interventions Direct Private Finance Towards Green Investments

This paper investigates how state-led interventions using blended finance can effectively steer private capital towards green investments essential for decarbonization. It analyses the specific mechanisms through which public finance can de-risk and incentivize private sector participation in renewable energy and other low-carbon infrastructure projects. The study explores different models of public-private co-investment and identifies key factors for success, including clear policy signals, credible public commitment, and well-designed financial instruments. The research provides critical insights for policymakers on structuring interventions to accelerate the green energy transition.

Impact Investing in Asia: Just Getting Started

This chapter explores the nascent but growing landscape of impact investing in Asia, highlighting that the region is “just getting started” in this field. It discusses the role of social enterprises and funds like Acumen in pioneering impact investments across various Asian contexts. The analysis identifies key opportunities and challenges for scaling impact investing in Asia, emphasizing its potential for regional development.

Blended Finance for Scaling Up Climate and Nature Investments

This report outlines strategies for using blended finance to significantly scale up investment in climate and nature-based solutions. It addresses the need for better governance, improved risk management techniques, and the aggregation of assets to attract large-scale institutional investors. The paper proposes creating dedicated platforms and facilities that can pool projects and structure financial instruments to match private sector risk appetites. It emphasizes the importance of combining public, private, and philanthropic capital to create bankable opportunities that deliver both environmental impact and financial returns at scale.

Impact Investing for Social Finance

This case study by Karim Harji and Tessa Hebb provides an overview of impact investing as a critical component of social finance. It examines the development of the social capital market and the role of impact investing in mobilizing capital for social and environmental good. The paper discusses various models and approaches within impact investing, contributing to a broader understanding of this emerging field.

Blended Finance Evaluation: Governance and Methodological Challenges

This paper tackles the complex challenge of evaluating blended finance operations, which combine public development funds with private capital. It highlights key governance and methodological issues that evaluators face, such as defining the unit of analysis, assessing causality and additionality, and accurately measuring mobilisation and development impact. The authors argue for a systems-based approach to evaluation that considers the interplay between public and private actors and the broader market effects. It provides practical recommendations for agencies on building robust evaluation frameworks to improve the effectiveness of blended finance.

Recent Trends in Sustainable Finance

This article reviews recent trends in sustainable finance, highlighting the increasing integration of Environmental, Social, and Governance (ESG) factors into investment decisions. It explores how sustainable finance has evolved to address global challenges and promote responsible investment practices. The paper discusses various aspects of sustainable finance, including its growth, key drivers, and the shift towards more holistic approaches that consider both financial returns and positive societal and environmental impacts.

Impact Investing and Venture Capital Industry: Experimental Evidence

This paper presents experimental evidence on the intersection of impact investing and the venture capital industry. It examines investor behavior and decision-making in the context of sustainable finance, including the potential for “greenwashing.” The study contributes to understanding how impact considerations influence investment choices and the challenges of ensuring genuine social and environmental impact within venture capital.

Best Practices in Sustainable Finance

This foundational report provides a comprehensive overview of best practices in sustainable and socially responsible investment (SRI) and finance as of 2005. It outlines the business case for SRI, detailing various strategies such as negative/positive screening, shareholder advocacy, and community investing. The document compiles pioneering examples from global financial institutions and corporations that were early adopters of integrating environmental, social, and governance (ESG) factors into their financial decisions. It offers a guide for investors and companies seeking to align financial activities with long-term sustainability and corporate social responsibility goals.

Impact Investing and Responsible Investing: What Does It Mean?

This article clarifies the distinction between impact investing and responsible investing, particularly for institutional investors. It delves into the nuances of each approach, explaining their definitions, objectives, and methodologies. The paper aims to provide a clearer understanding of how these concepts relate to and differ from one another, enabling investors to make informed decisions that align with their financial and social goals.

Promoting Social Enterprise Financing

This discussion paper explores strategies to enhance financing for social enterprises by analysing three innovative models that align public, private, and philanthropic capital. It examines the match-funding model (co-funding contributions against private investments), capital funds (pooled resources managed by intermediaries), and social impact bonds (investor repayment contingent on measurable social outcomes), assessing their effectiveness across Europe. The authors argue these blended approaches can mobilise significant capital while achieving social returns, but also highlight challenges in measurement, regulatory transparency, and intermediary capacity. They conclude by recommending policy support, stronger impact metrics, and optimized institutional frameworks to scale social finance efficiently.
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