Briefing Paper – Climate Finance for a Just Transition: Blended Finance and Catalytic Strategies .

Briefing Paper – Climate Finance for a Just Transition: A Forum on Blended Finance and Catalytic Strategies

While still falling short of the $3.5 trillion annual investment needed to reach a net-zero future, global climate finance is accelerating and has more than doubled over the past decade. Yet ensuring this capital flows to the most vulnerable often requires intentionality. Currently, the majority of large-scale climate finance and impact capital focuses on developed markets, and even the share targeting lower- and middle-income countries tends to concentrate upon the emerging middle class. This imbalance is further compounded by the additional costs or risks, perceived or actual, in reaching historically disadvantaged groups or regions when unproven business models or markets are involved. Blended finance is thus a vital solution for unlocking climate finance in ways that ensure a just transition.

Chemonics UK and the Impact Investing Institute convened a diverse audience of investors, policymakers, researchers, and practitioners at their hybrid event, Climate Finance for a Just Transition: A Forum on Blended Finance and Catalytic Strategies, on 27 June 2023. The event featured a panel discussion on the challenges and opportunities for blended finance in the context of the global movement for a just transition.

The panel was chaired by Louise Quy, Managing Director, Chemonics UK and speakers included:

• Gergo Mathe, Climate Co-Finance Associate at European Bank for Reconstruction and Development (EBRD);
• Maria Teresa Zappia, Chief Impact and Blended Finance Officer and Deputy CEO at BlueOrchard Finance, Head of Sustainability and Impact at Schroders Capital, and Global Head of Impact at Schroders;
• Bella Landymore, Policy and Strategy Director at the Impact Investing Institute;
• Tracey Austin, Sector Director, Financial and Professional Services at the UK Department for Business and Trade;
• Tara Sabre Collier, Director of Impacting Investing and Sustainable Finance at Chemonics UK, and Visiting Fellow at Said Business School, University of Oxford; and
• Ben Cotton, Head of Capital Markets at Matrix Global.