A coalition of major financial institutions and governments has unveiled plans to establish a company dedicated to boosting private investment in sustainable development projects across emerging markets and developing economies (EMDEs).
Blended finance integrates public or philanthropic capital with private funding through a unified investment structure, facilitating investment in ventures with high perceived risk profiles, such as new climate mitigation technologies.
The coalition, known as Scaling Capital for Sustainable Development (SCALED), was originally introduced as the Hamburg Sustainability Platform at last year’s Hamburg Sustainability conference. It has since evolved into a formal partnership involving financial giants like Allianz, AXA, and Zurich Insurance Group, alongside governments from Canada, France, and the UK, with a focus on expanding sustainable blended finance investment opportunities in EMDEs.
At this year’s conference, which took place this week, the coalition announced plans to launch a service provider company focused on investment standardisation.
Achim Steiner, Administrator at the UN Development Programme, commented, “We are in a time of uncertainty with rising geopolitical divisions, where development pathways are under pressure because of aid cuts, trade tension, and the debt crisis. What we need now is more cooperation, not less. It is in opportunities like the Hamburg Sustainability Conference where we find those critical touch points to take on big ideas, rebuild trust, advance innovative solutions, and forge meaningful connections across communities around the world.”
The new company is anticipated to begin operations by the end of this year. Its primary role will involve creating standardised financial vehicles for both public and private investment utilisation.
Additionally, the company will play a pivotal role in matchmaking, bridging existing financing gaps across climate, infrastructure, and development sectors.
SCALED predicts that this initiative will unlock billions in private investment over the coming years.
This announcement was part of a broader series of developments at the conference, attended by around 1,600 global leaders from government, business, and academia.
The Asia-Pacific Blended Finance Community of Practice was also launched, serving as a regional hub to coordinate and mobilise blended finance solutions for sustainable development, aimed at enhancing collaboration, knowledge exchange, and deal origination.
