Mainstreaming Blended Finance in Climate-smart Agriculture: Complementarity, Modality, and Proximity

This study examines the mainstreaming of blended finance in climate-smart agriculture, an area often plagued by risks. It bridges the literature gap by considering theoretical lenses of governance, actor moral preferences, and institutional complexity. Findings indicate that while local banks hesitate due to procedural restrictions and implementing agencies feel overburdened, actors collaborate due to role complementarities and proximity. Recognizing and internalizing these factors can promote blended finance mainstreaming, transforming it into a regular financing mode for sustainable agriculture.