The level of blended finance for climate projects has declined by 60% in recent years despite global leaders’ sharp focus on the issue, according to a new report.
Blended finance is when traditional forms of development finance from public and philanthropic sources are used to bring in private capital to achieve the United Nations Sustainable Development Goals. The decline in blended climate finance occurred even as blended finance overall has recovered from the lows it reached during the COVID-19 pandemic.
Climate woes: Between 2019-2021, $14 billion went to blended climate deals, a sharp drop from $36.5 billion in the previous three-year period, according to Convergence, a group that includes public institutions and private sector investors, and releases an annual report on blended finance.