Blended finance has made real progress in mobilising private capital for climate and development in emerging markets, but building a blended fund remains complex, time-consuming, and costly — limiting its institutional appeal.
Building on a 2025 report, Scaling Blended Finance II, developed by Glasgow Financial Alliance for Net Zero (GFANZ), British International Investment (BII), and Boston Consulting Group (BCG) addresses this by offering a practical framework for fund managers to identify investor constraints, select the most appropriate catalytic instruments, and calibrate the level of concessionality needed to unlock commercial capital. Drawing on over 40 real-world examples across markets and sectors, the report helps fund managers structure funds faster, shorten negotiation timelines, and develop investment vehicles that can be replicated and scaled, including by local fund managers in emerging economies.