24 June 2025

As part of London Climate Action Week 2025, Climate Policy Initiative (CPI), MUFG Bank, the Green Guarantee Company (GGC), and BPL hosted an in-person event that brought together over 80 finance professionals, including development financial organizations, institutional investors and other enablers, to explore how blended finance can accelerate climate solutions in emerging markets.

The panel featured alumni of the Global Innovation Lab for Climate Finance, including Green Guarantee Company, Catalyst Fund, and CoolPact Capital, and Lab member MUFG. It highlighted a range of practical, scalable solutions that aim to bridge the finance gap in the Global South.

• Blended finance is working. Structures like guarantees are unlocking real capital. The USD 100 million guarantee facility of the Green Guarantee Company, rated by Fitch, is enabling up to USD 1 billion in investment, demonstrating the multiplier effect of risk-sharing instruments.
• Institutional capital is interested but cautious. Many investors from the Global North remain hesitant to engage in emerging markets without significant de-risking. In many cases, they expect extensive risk buffers. Tailored de-risking mechanisms remain essential.
• Local capacity is crucial. Training and supporting financial institutions and organizations in emerging markets is key to promoting conversations and strengthening trust between regions.
• Innovators are ready. From cold chain logistics in India to adaptation tech in Africa, the pipeline companies of CoolPact Capital and the Catalyst Fund are delivering market-ready solutions that reflect local needs and realities.
• Adaptation matters. The Gaia Fund, a new USD 1.5 billion blended finance platform co-founded by MUFG and FinDev Canada, aims to channel 60 percent of its capital toward adaptation, reaching borrowers typically excluded from mainstream finance.