The UN-convened Net Zero Asset Owners Alliance (NZAOA) has called on policymakers to facilitate the scaling of blended finance structures to fund climate solutions. The alliance, which collectively owns US$10.6 trillion in assets, said an increase in blended finance vehicles would “go a long way” to mobilising an increased flow of climate capital towards where it is needed most: emerging markets and developing economies (EMDEs). NZAOA has outlined a series of recommendations for policymakers, including a scaling and aggregating pools of concessional capital that create fiduciary investment assets. The call to action is signed by UN Special Envoy for Climate Action and Finance, Mark Carney, and UN High-Level Climate Action Champion, Nigel Topping, and supported by the Sustainable Markets Initiative and the Investor Leadership Network. Günther Thallinger, Chair of the NZAOA and Member of the Board of Management of Allianz, said: “Using blended finance structures is simply a win-win for the public and private sectors. While the private sector benefits from an improved risk profile, the public sector and the philanthropic community achieves a multiplier effect. At the core, this is not new, but it has been tested multiple times. We have before us an opportunity to incubate and scale investment to create substantial global impact. Let’s finally use this opportunity.”
