QUESTION 01
How did the discussions at Climate Week emphasize the role of blended finance and investment strategies in addressing climate challenges?
As with all global development challenges, when we move from ideas to actions, we need to think about how those actions can be financed. In the case of climate change, financing is a major constraint, as we are not just billions but trillions of dollars short of taking the necessary actions to limit global temperature rise to 1.5°C. Thus, it is critical for development actors—donors and philanthropic organizations—to consider how they can leverage their resources through mechanisms like blended finance to crowd in additional capital.
I was excited to participate in two events during climate week that addressed specifically how we might scale up the use of blended finance for climate action. The first was the blended finance conference led by the Sustainable Investing Research Initiative at Columbia University. During the full-day conference leaders from institutional investors like CDPQ, IFC and Mirova swapped perspectives based on a series of 13 case studies of large, blended finance transactions focused on climate. A key insight was that effective scaling of blended finance will require strategic use of catalytic capital, simplified design for timely deployment, and ecosystem-wide accelerators, including standardized frameworks, regulatory support, and promotion by champions of blended finance. However, most important of all is building deep trust among partners to overcome the natural frictions that occur in incentives and motivations for stakeholders participating in different parts of the blended finance capital stack.
The second event was a Convergence panel and Happy Hour hosted at our office where a panel previewed the findings from their annual ‘State of Blended Finance’ report. Some of the highlights include the fact that blended finance for climate action reached record highs in 2023, largely through private sector engagement and increased large-scale transactions, reflecting a resilient and growing interest in climate mitigation and adaptation in emerging markets. However, significant gaps remain, especially in adaptation finance, which sees lower leverage ratios and private sector participation. Recommendations to bridge these gaps include enhanced use of technical assistance for developing NDC-aligned roadmaps in EMDEs, addressing local policy barriers, and engaging local private sectors to drive NDC implementation and align climate financing with national goals.
Reflecting on these two events left me optimistic that while lots of work remains to be done, many new and often larger players are eager to collaborate and use blended finance to help close financing gaps.
QUESTION 02
What climate finance–related announcements were discussed and struck you as promising in making progress toward climate goals, particularly in underserved and vulnerable markets during Climate Week?
Private investment in climate-linked markets is growing. There has been a notable rebound in the sustainable debt market, with a 15% rise in green, social, and sustainability bonds in 2024. Private capital is increasingly being directed toward infrastructure, clean energy, and thematic areas like gender equality, reflecting a broader trend where investors are prioritizing both financial returns and societal impact.
Electrification has re-emerged as a priority, particularly as a key driver of economic growth in Africa. The lack of electricity access for 600 million people in Africa represents both a challenge and an opportunity. To address this, the Mission 300 (M300) initiative, backed by the World Bank, African Development Bank, and the Rockefeller Foundation, aims to provide electricity to 300 million Africans by 2030. With an initial $10 million commitment, the M300 TA Accelerator is designed to fast-track electrification projects, doubling the current pace of access and fostering green, inclusive growth across the continent.
Another major area where I was excited to see progress was related to our oceans. I had the privilege of attending the Ocean Innovators Platform session at the Harvard Club which emphasized the need for societal and economic transformation to protect the ocean’s vital role in human survival. The event featured two panel discussions: one on advancing a regenerative blue economy, and another showcasing innovator advancing cutting-edge solutions and investment opportunities in ocean-based industries. It was a great event, and it was nice to see our client Builders Vision present their new Oceans Strategy and highlight the impact of some of their oceans-related investments at the session.
QUESTION 03
Anything else struck you during Climate Week that people should be aware of?
Yes, I found Climate Week generally a great place for many actors active in impact, ESG and sustainable investment to come together and share insights. In my case since I mainly work on impact investing it was a wonderful opportunity to engage with our clients, friends and peers active in that ecosystem.
Of note I want to highlight a major event that took place during the week that doesn’t necessarily specifically relate to the climate but more broadly how capital can be used as a force for good.
The event was titled “Valuing Impacts to Make Better Decisions” and was hosted by International Foundation for Valuing Impacts (IFVI) with GSG Impact at the Harvard Club on September 25th. In the session attendees previewed groundbreaking environmental impact accounting methodologies and value factors designed to integrate environmental impacts into financial analysis and company valuation. IFVI introduced four interim methodologies that assess over 130 pollutants across 200+ countries and regions, allowing investors with trillions in ESG assets to quantify company impacts monetarily. This is a real step forward and major milestone for the impact investing and impact measurement ecosystem, marking a new era for impact valuation.
