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:

1. Closing capacity gaps among financial institutions and professionals
2. Creating better market incentives and an enabling environments
3. Developing a pipeline of bankable projects.

Building Capacity, Unlocking Finance for Climate and Sustainable Development in EMDEs

Global Capacity Building Coalition (GCBC)