Investing in Emerging and Frontier Economies: How Blended Finance can make the most of public funding

Combating climate change and achieving the SDGs require vast investment in sustainable projects in developing countries, but the world is falling short.A crucial reason is that a rich source of funds is not being fully tapped into: the private sector, which is eager to significantly increase its sustainable investments, but is constrained by avoidable obstacles.Private investors face an unattractive risk-return nexus; they lack easy access to crucial information: e.g. which projects the public sector is planning that they could take part in, and what they entail.Exposure to the risks of investing in less mature markets, with insufficient insurance available, deters them as well.In this report, the Investor Leadership Network (ILN), whose members manage over USD 9 trillion of investments, offers solutions.It calls for better collaboration between public and private sectors to make blended finance (public/private investment partnerships) a driving force in this area.Compiled with the support of The Rockefeller Foundation, the report calls for a sea change in how multilateral development banks (MDBs), governments, foundations, and other public institutions see private-sector involvement