A coalition of major financial institutions and governments has announced plans to launch a new company dedicated to scaling private investment in sustainable development projects across emerging markets and developing economies (EMDEs).
According to ESG Today, the initiative, known as SCALED (Scaling Capital for Sustainable Development), aims to transform the blended finance landscape by standardising investment vehicles and facilitating deal-making in climate, infrastructure, and development sectors.
Blended finance, which merges public or philanthropic funds with private capital, is increasingly seen as a critical solution to mobilise funding for projects that carry high perceived risks, such as early-stage climate technology. The coalition behind SCALED includes prominent insurers like Allianz, AXA, and Zurich Insurance Group, as well as the governments of Canada, France, and the UK.
Unveiled at the Hamburg Sustainability Conference this week, the new company will act as a service provider, focused on creating standardised financial products that are accessible to both public and private investors. It is set to begin operations by the end of this year.
The platform is expected to play a pivotal role in matchmaking investors with sustainable investment opportunities, helping to address persistent financing shortfalls in key sectors. By reducing structural barriers and establishing shared frameworks, SCALED anticipates unlocking billions of dollars in private capital for EMDEs.
UN Development Programme administrator Achim Steiner underlined the significance of the effort, particularly in light of global economic tensions. “We are in a time of uncertainty with rising geopolitical divisions, where development pathways are under pressure because of aid cuts, trade tension, and the debt crisis. What we need now is more cooperation, not less. It is in opportunities like the Hamburg Sustainability Conference where we find those critical touch points to take on big ideas, rebuild trust, advance innovative solutions, and forge meaningful connections across communities around the world.”
In parallel, the Asia-Pacific Blended Finance Community of Practice was also launched at the conference. This regional hub will focus on coordinating blended finance strategies to accelerate sustainable development, with goals to enhance collaboration, share best practices and generate new investment pipelines in the Asia-Pacific region.
With around 1,600 global leaders from government, finance, and academia attending the event, the momentum behind blended finance as a strategic investment approach appears to be growing rapidly
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