Achieving the Paris Agreement’s 1.5°C target requires unprecedented mobilisation of climate finance, yet an annual investment gap of US$4.4–9.2 trillion persists. Although private capital is substantial, high perceived risks, misaligned incentives, and regulatory uncertainty limit its participation in mitigation and adaptation. Blended finance, combining concessional public funds with private investment has emerged as a key mechanism to de-risk projects and improve returns.​

Limiting global warming to 1.5°C under the Paris Agreement demands a fundamental transformation of global financial systems. Yet, despite growing commitments, climate investments remain far below what is required. This research is motivated by a central question: How can blended finance be structured to mobilise private capital at scale for climate action? It further explores: What systemic barriers constrain its effectiveness? and What practical strategies can unlock greater impact, particularly in developing countries? Grounded in real-world financing challenges, this study bridges theory and practice, offering actionable insights for policymakers, fund managers, and development partners seeking to accelerate climate-resilient, low-carbon transitions.​

This integrative review synthesises research from 2014–2024, examining how blended finance has evolved, the barriers limiting its effectiveness, and strategies to overcome them. Instruments such as guarantees, first-loss capital, and performance-based incentives enhance bankability, particularly in renewable energy, sustainable agriculture, and urban resilience. However, complex structures, fragmented regulations, and weak impact metrics constrain scale. Guided by stakeholder theory, the study highlights the roles of public, private, and development actors. Evidence shows leverage ratios above 4:1 are possible, but implementation remains uneven. Standardised instruments, enabling policies, and robust impact monitoring are critical to accelerate a just, low-carbon transition.

How to register

The session will be held online on Zoom. Link will be sent out to registered participants.

About the speaker

Benedict Libanda is a Doctorate candidate in the Executive Doctorate of Business Administration (EDBA) program at École des Ponts Business School (2023-2026), where his research focuses on blended financing mechanisms and strategies to scale capital mobilisation for global climate change goals. His doctoral work examines how innovative financial structuring can unlock large-scale private investment to accelerate decarbonisation and climate resilience, particularly in emerging and developing economies.

His doctorate is structured around three interlinked research outputs:

• An integrative literature review synthesising global evidence on blended finance for climate action;
• A teaching case designed to bridge theory and executive decision-making in climate finance structuring; and
• An embedded case study analysing real-world fund design and capital mobilisation dynamics.

With over 25 years of professional experience in climate finance and industrial decarbonisation, Benedict brings deep practitioner insight into his academic work. He has led and advised on complex climate funds, blended finance vehicles, and large-scale capital deployment strategies across Africa and internationally. His research bridges scholarship and practice, contributing to both theoretical advancement and actionable policy and investment solutions aligned with global net-zero and sustainable development objectives.