Outcome-Based Concessional Blended Finance for Sustainable Financing

The United Nations estimates that less than 1% of total global finance would be needed to achieve the 2030 Sustainable Development Goals. Properly structured financial mechanisms can integrate climate into financial institutions (FIs) to address the sustainable finance gap. The Climate Investment Funds’ Technical Assistance Facility (CIF-TAF) and IDB Invest conducted a study on how blended finance models supported by technical assistance can encourage sustainable practices within FIs. Drawing on case studies from Brazil and Ecuador and focused on blended financing for solar generation and thematic bonds for green lending activities, this analysis identifies key elements influencing the transformation of FIs toward sustainability.