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Generate QuizWhich of the following is a challenge in scaling up 'Blended Finance' for environmental projects in developing countries?
- Excess of concessional capital
- Aligning risk-return profiles of public and private investors, and ensuring additionality
- Too many bankable projects
- Overregulation of financial markets
Answer: Aligning risk-return profiles of public and private investors, and ensuring additionality
Blended finance uses public/concessional funds to de-risk investments and attract private capital; success depends on clear metrics, governance, and demonstrating that public funds enable projects that wouldn't otherwise occur.