As the United Nations estimates that less than one percent of total global finance would be needed to achieve the 2030 Sustainable Development Goals, it is crucial to address the sustainable finance gap by creating properly structured financial mechanisms that can integrate climate into financial institutions (FIs).

To contribute to this shift, BASE Foundation prepared a study for the Climate Investment Funds’ Technical Assistance Facility (CIF-TAF) and in collaboration with IDB Invest on how blended finance models supported by technical assistance can encourage sustainable practices within FIs.

The report, titled “Outcome-Based Concessional Blended Finance for Sustainable Financing: Key Lessons and Insights from Latin America”, analyses two case studies from Brazil and Ecuador, focused on blended financing for solar generation and thematic bonds for green lending activities.

These case studies showcase innovative financial transactions that incentivise sustainability through outcome-based mechanisms linked to achieving predefined milestones. The report emphasises how blending concessional finance with technical support enables FIs to undertake systemic transformations in their portfolios, operations, and strategic approaches, aligning with international sustainability standards and contributing to the global climate agenda​.

In a virtual session on the 11th of December, the CIF will officially launch the report and share key insights from the study and experiences from practitioners on the ground to guide the next phase of zero-carbon transition and climate-resilient investments. The discussion will spotlight the impact of blended finance transactions on financial institutions, including overarching portfolio shifts, governance enhancements, and strengthened client engagement. It will also highlight how these mechanisms are driving transformative business practices in alignment with ambitious climate goals across Latin America and the Caribbean.