Efficacy Of Blended Finance In Climate Change Infrastructure Projects

As the conversations surrounding climate change prevention and Sustainable Development Goal (SDG) financing grow in importance in the 21st century, so too do the conversations around the intersections of solutions around the topics. Blended financing has been utilized in several different forms over the past decade or so to tackle the largest problems in the global economy set out by the United Nation’s SDGs. While the tool has been leveraged for several of these Sustainable Development Goals, it has been particularly useful in attracting private investment for environmental sustainability-focused projects via the programs in place at several of the Development Financing Institutions of which multilateral banks make up the majority. This paper explores the characteristics of several types of Blended Finance investments in the climate change space to identify if there are any descriptive drivers that have attracted more investment. The hope of this paper is to identify certain characteristics in these investment projects that may attract investments of lesser scale, in different sectors, or in countries that are not receiving as much Blended Finance investments.