Blended Finance: The Key to Mobilising Private Capital for Global Sustainability

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Amundi Investment Institute’s Responsible Investment Insights (Oct 2025) explores how blended finance can bridge the multi-trillion-dollar gap in funding the energy transition and UN SDGs.

  • Public–private partnerships are essential: Blended finance structures—using concessional capital, first-loss guarantees and credit enhancements—help de-risk projects in emerging markets and make them investable for institutions.

  • Model sophistication matters: Scenario-based calibration of junior-senior tranches, diversification, and robust risk benchmarking reduce required risk premiums and increase scalability.

  • Market standardisation is next: To grow beyond its $230 billion size, blended finance must adopt replicable structures, stronger governance, and cross-stakeholder collaboration.

Can structured impact investing evolve from niche innovation to mainstream capital allocation? The full report provides Amundi’s quantitative framework and practical design insights.

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