Blended Finance Solutions for Scaling Up Sustainability Investments: Opportunities and Challenges

This paper reviews blended finance solutions designed to scale up sustainability investments, with a particular focus on green infrastructure and urban resilience in secondary cities. It discusses the application of specific instruments like green bonds, concessional debt, and first-loss guarantees to make projects viable. The research emphasizes the importance of multi-stakeholder governance models and strong institutional frameworks to successfully attract private capital for socially inclusive and environmentally sound urban infrastructure. It highlights both the opportunities for impact and the significant challenges in structuring and implementing these complex arrangements.