The publication explains how targeted, high-impact capacity building can help mobilize finance. It reviews the current landscape of capacity-building initiatives and offers recommendations for voluntary action by funders, service providers, and end-users. The report also underscores that capacity building is essential for scaling blended finance, helping stakeholders design and structure deals that use concessional capital to de-risk investments and mobilize much larger volumes of private finance.
The paper shows that capacity building can drive climate finance mobilization by activating three main levers:
- Closing capacity gaps among financial institutions and professionals
- Creating better market incentives and an enabling environments
- Developing a pipeline of bankable projects.
