Drive SDG outcomes and certify impacts where they are most needed through traditional blended finance vehicles.
Traditional blended finance vehicles typically involve the use of concessional funds, such as grants or low-interest loans, to help mobilise additional private capital for investments. These can support projects such as sustainable infrastructure, healthcare, education, or renewable energy that deliver positive social and environmental impact.
Blended finance vehicles can reduce the following barriers to private investment:
- High perceived and real risk
- Lower risk-adjusted returns relative to comparable investments
Example: Subnational Climate Fund (SCF) Initiative
The Fund Requirements within Gold Standard for the Global Goals are a cornerstone of the collaboration between Catalytic, IUCN, and Pegasus Capital Advisors in the Subnational Climate Fund. The Gold Standard team supports the impact investor, Pegasus Capital Advisors, to deliver on their sustainable development strategy, through the development of tools for impact assessment at each decision point in the process.
The Green Climate Fund (GCF) serves as the risk-taking anchor investor on this USD $750 Million equity and $28 million technical assistance blended finance vehicle. Technical assistance supports the identification, feasibility study and environmental impact assessment (EIA) financing, development, and implementation of a pipeline of subnational projects ($5-$75 million), aligned with host country Nationally Determined Contributions (NDCs).