Investor Leadership Network and The Rockefeller Foundation advance recommendations to increase private investment and blended finance partnership ahead of the G20 and COP26
NEW YORK | October 4, 2021 — The Investor Leadership Network (ILN), a leading network of investors taking action for people, planet, and prosperity, and The Rockefeller Foundation announced the release of a new Blended Finance Blueprint. Investing in Emerging and Frontier Economies: How Blended Finance can make the most of public funding proposes a clear set of measures that the blended finance community can take to reduce risk and barriers to investment, create new cross-sector partnerships, and increase sustainable investments in emerging and frontier economies. The Blueprint recommends multilateral development banks, governments, philanthropic organizations, and other public sector actors change how they involve the private sector in financing global sustainable development in order to address current and futures crises caused by climate change and achieve the UN Sustainable Development Goals (SDGs).
Combatting climate change and achieving the SDGs require vast investments in sustainable projects in developing countries, but funding is falling short. The private sector is eager to significantly increase its sustainable investments, but is often constrained by avoidable obstacles. Private investors lack access to crucial public sector information, and feel insufficiently insured against the risks of investing in developing economies.
Many ILN members – 14 global institutional investors who manage over USD9 trillion in investments – invest in sustainable infrastructure projects in emerging and frontier economies. In collaboration with The Rockefeller Foundation, ILN members identify seven specific actions that the public sector can take over the short, medium, and long term to increase private investors’ ability to participate in blended finance partnerships.
CEO of the Investor Leadership Network Amy Hepburn said, “This Blueprint signals that institutional investors are taking their role in boosting the transition in emerging markets seriously. They are motivated to solve the current investment barriers and eager to establish innovative, cross-sector partnerships to help mitigate the crises caused by climate change. We are grateful for the opportunity to align with The Rockefeller Foundation around these calls to action, and I look forward to collaborating with COP26 and G20 leaders to see these proposals actualized across the blended finance community.”
Mike Muldoon, Managing Director of Innovative Finance at The Rockefeller Foundation added, “The private sector is needed now more than ever to tackle the growing divergence between the developed world where vaccines and economic stimulus are bountiful, and the developing world where they are not. ILN’s report highlights the role institutional investors believe they can play, in their own voice, to support increased investment in emerging markets in partnership with philanthropy and other members of the development finance landscape. These recommendations provide a clear path towards increased private sector mobilization as we collectively seek to respond to the pandemic and drive a green and equitable recovery.”
About the Investor Leadership Network
The Investor Leadership Network was launched at the 2018 G7 to facilitate and accelerate collaboration by leading global investors on key issues related to sustainability and long-term growth. As the leading network of investors taking action for people, planet and prosperity, the CEO-led group is composed of 14 global institutional investors representative of all continents and assets classes, with over US$9 trillion in assets under management. Learn more about the Investor Leadership Network by visiting our website and following us on Twitter @ILNinfo
About The Rockefeller Foundation
The Rockefeller Foundation is a pioneering philanthropy built on collaborative partnerships at the frontiers of science, technology, and innovation to enable individuals, families, and communities to flourish. We work to promote the well-being of humanity and make opportunity universal. Our focus is on scaling renewable energy for all, stimulating economic mobility, and ensuring equitable access to healthy and nutritious food. For more information, sign up for our newsletter at rockefellerfoundation.org and follow us on Twitter @RockefellerFdn.