Closing the climate investment gap in emerging markets and developing economies (EMDEs) will take political will.
The Net-Zero Asset Owner Alliance is calling on policymakers to support scaling blended finance, an instrument that can help address structural deterrence to investments in EMDEs (where the risk level is normally too high for institutional investors). By leveraging public and philanthropic capital to improve the risk profiles of investment opportunities, blended finance can mobilise significant of much-needed private capital.
In the Call to Action, the Alliance outlines 5 solutions that would bring about systemic change and create an investment environment where capital can flow to where it is most needed.