Addressing the challenges posed by climate change in the agricultural sector requires large-scale investment which can’t be sourced from concessional sources alone. By de-risking investments, blended finance offers solutions to incentivize participation from private sector actors who would otherwise not invest in this space. However, the benefits of blending actually go beyond mere de-risking mechanisms.

This Learning Note builds on SAFIN’s existing work on blended finance to highlight the advantages blending can contribute to pipeline development, as well as the identification and promotion of green agri-SME business models for investment by Climate Funds targeting the agriculture space.