Asia faces a staggering US$2 trillion annual climate investment gap, yet blended finance — long heralded as the solution — has delivered only a fraction of its potential. The reason: a deal-by-deal operating model that is too slow, too costly, and too fragmented to scale.
This paper, produced by BCG and FAST-P, argues that the field must evolve from bespoke transactions toward platform-based structures that pool capital, align incentives, and enable replication across markets. It introduces three archetypes — Anchor Allocators, Active Catalysts, and Strategic Shapers — to help platform designers choose the right model for their context.
Using FAST-P, the Singapore-led blended finance initiative targeting up to US$5 billion for Asia's green transition, as a case study, the paper offers a practical framework for building blended finance platforms that are credible, repeatable, and investable at scale.