May 20, 2025, Toronto, Canada - After six months of research and consultations with many countries and organizations, today Convergence launches the Consultations Report proposing a Scale Private Investment Mobilization Action Plan to mobilize private investment at scale effectively and efficiently to finance SDG and climate capital investment in Low & Middle-Income Countries. The Action Plan is a practical, comprehensive approach to achieve the private investment mobilization objectives and standards of the Financing for Development 4 Outcome Document (using existing development finance resources). Convergence will continue to hold consultations in May and June and transform the Consultations Report into an Interim Report by June 30, 2025 ahead of the Financing for Development Forum (FfD4) in Sevilla.
The Consultations Report has been prepared as part of the Scale Private Investment Mobilization Project, led by Convergence and funded by the Gates Foundation, Finland, France, Luxembourg, and Switzerland. The Project was set up to help blended finance and private investment mobilization to deliver on their potential and the expectations to be agreed in Sevilla. The aim is to scale up proven models that deliver impact and investment at scale instead of continuing fragmented, customized, and increasingly complicated blended finance designs.
“The proposed Scale Private Investment Mobilization Action Plan would represent a decisive step forward in aligning international efforts, reducing complexity, and ensuring that development and climate finance are fit for purpose in today’s global investment landscape”, said Chris Clubb, Managing Director at Convergence.
A significant part of the Action Plan is the proposed package of 12 Private Investment Mobilization Models (PIMMs) identified by Convergence and others as most effective and efficient way to standardize and scale SDG and climate investment in developing countries. The PIMMs are based on a review of historical mobilization transactions that (i) have demonstrated effective and efficient mobilization and (ii) have best potential to mobilize private investment to/within developing countries in the quantity and quality necessary for sustainable development.
The package of 12 PIMMS is identified by Convergence and is proposed to include:
- Two PIMMs that help increase the number of viable projects through using public funding to co-fund early-stage project development in high-impact sectors like renewable energy.
- Five PIMMs that improve project-level investability through reducing risk at project level, such as funding organizations that issue investment-grade guarantees to mobilize lenders to finance important projects they would otherwise not be able to finance.
- Three PIMMs that enhance portfolio-level investability through tiered blended finance funds, structured to create investment-grade bonds and notes in senior capital through the strategic use of concessional and non-concessional public sector funding.
- One PIMM addresses FX risk – to mitigate currency risk for countries, projects and investors
- One PIMM is dedicated to domestic financial and capital markets development – as prioritized in the FfD4 Outcome Document
Together, these 12 PIMMs provide a standardized and scalable roadmap for mobilizing domestic and cross-border private investment—designed to be practical, replicable, and aligned with existing regulatory and market contexts - and identify how donors and developing country governments can best utilize their scarce finance resources to catalyze the private sector capital necessary to generate development outcomes.
No one organization has a monopoly on which mobilization models should be of priority to standardize. Therefore, the proposed Action Plan is grounded in not only Convergence’s empirical review of around 1,500 blended finance transactions but also consultations with more than 100 stakeholders across developing countries, OECD Development Assistance Committee countries, multilateral development banks, development finance institutions, philanthropic foundations, and private investor groups. Convergence will continue to lead an extensive consultation process through 2025, engaging with key global stakeholders to finalize the Action Plan and final package of PIMMs.
Learn more about the Scale Private Investment Mobilization Project here.
About Convergence
Convergence is the global network for blended finance. Convergence’s Blended Finance Accelerator supports blended finance practitioners with design grants, acceleration support, and market intelligence to scope, structure, and launch new blended finance solutions that unlock commercial investment to accelerate sustainable development in emerging markets.
On top of market acceleration through its Blended Finance Accelerator, Convergence generates blended finance data, intelligence, and deal flow to increase private sector investment in developing countries. Convergence’s global membership includes over 160 public, private, and philanthropic investors as well as sponsors of transactions and funds.
Media Contact
Sijia Yi
Head of Communications,
Convergence Blended Finance
[email protected]
