With its continued focus on climate, this year’s report arrives at a pivotal moment in global efforts to combat climate change and achieve the Sustainable Development Goals (SDGs). This edition unveils a complex landscape of opportunities and challenges, emphasizing the role of blended finance in mobilizing private capital for climate initiatives, particularly in Emerging Markets and Developing Economies (EMDEs).
In PART 1 of the report, blended finance data and insights provide:
A market overview.
A look back at previous findings.
An assessment of the macroeconomic context.
The climate blended finance market rebounded significantly from the previous year’s downturn
despite global macroeconomic challenges. The market saw an increase in large-scale transactions,
with six deals exceeding $1 billion. This upward trend reflects growing private sector interest in climate mitigation and adaptation efforts.
In PARTS 2 AND 3, climate data, deal trends, and investor trends are presented through various lenses including climate themes and archetypes. Data findings are further divided across vehicle type, geographic region and country, country income level, recipients, and SDG alignment. Investor trends focus on investor activity and investor type and incorporate stakeholder
perspectives of key market participants engaging in climate blended finance.
PART 4 provides a contrasting view of climate themes broken down into mitigation, adaptation, nature-based solutions, and cross-cutting climate transactions. Climate finance remains heavily focused on mitigation efforts while adaptation finance continues to be underfunded. Nature-based solutions (NbS) and cross-cutting initiatives, which address both mitigation and adaptation, are gaining traction as investors recognize the potential for these projects to generate both environmental and financial returns. The section also highlights the emerging importance of gender-responsive climate finance in driving inclusive outcomes.
PART 5 explores the pivotal role of NDCs in driving climate action at the national level. As countries update their NDCs with more ambitious targets for 2030 and beyond, the integration of blended finance within these frameworks becomes even more crucial for achieving climate goals. Case studies from Rwanda, Belize, and Indonesia are presented and illustrate how blended finance has been leveraged to support NDC implementation, particularly in renewable energy and conservation finance. The section points out both gaps and recommendations to improve the quality and detail of NDC roadmaps.
In PART 6 the report concludes that while the climate blended finance market has made significant progress, critical gaps remain, particularly in adaptation finance and the mobilization of private capital for climate resilience projects. Key recommendations are offered on the role blended finance can play in driving private investments at scale while identifying the appropriate solutions in developing regions.