Blended finance back on stage
A new policy note is re‑asking whether guarantees and blended finance structures can lower transaction costs, scale climate deals and make them repeatable — pushing public‑private blending back into mainstream climate finance debate. (x.com)
The Blended Finance Taskforce — hosted by SYSTEMIQ — published the policy note "Better Guarantees, Better Finance" in June 2023 focused specifically on the role of guarantees in scaling climate investment in Emerging Markets and Developing Economies. (systemiq.earth) The note quantifies the need at roughly $2.4 trillion per year for climate action in EMDEs (excluding China) and frames that requirement as a fivefold increase over current investment levels. (blendedfinance.earth) It calculates current mobilisation efficiency at under $0.30 of private capital mobilised for each public climate finance dollar deployed. (systemiq.earth) The Taskforce adds that guarantees represent under 5% of MDB climate finance commitments today, indicating a small current share to scale up. (systemiq.earth) Core prescriptions in the paper are concrete: scale existing guarantee products, launch new dedicated green‑guarantee facilities, and bind guarantee provision structurally to project preparation to cut transaction costs. (blendedfinance.earth) The note identifies barriers that raise deal costs—complex structuring, a lack of technical assistance, and thin project pipelines—and calls for streamlined governance and more TA to make guarantee deals repeatable and bankable. (financeincommon.org) The Taskforce explicitly urges MDBs, bilateral donors and summit-level forums (citing the Macron–Mottley New Global Financing Pact context) to commit to scaling guarantees and to create global green‑guarantee platforms as implementation vehicles. (systemiq.earth)
