David Kuijper explains what blended finance entails and how it is needed to get important transitions going, especially in emerging markets. He acknowledges that, despite the clear need for blended finance initiatives, it is still very difficult to scale them up. Despite a yearly financing gap in the trillions, private capital mobilisation through blended finance remains modest, with USD 14 billion in 2022. What is needed is market creation, the creation of an environment that invests in investing, thus securing a pipeline and improving the scalability of transactions.

Judith Santbergen explains how Hivos-Triodos Fonds has the ability to also do smaller transactions, focusing on SMEs in high impact sectors in emerging markets. Tailored to meet investors’ requirements – be it fiduciary or regulatory – blended finance can open new markets and offer diversification.