This study examines the transformative potential of blended finance in reimagining Latin America’s financial institutions as catalysts for sustainable development. Focusing on outcome-linked concessional blended finance instruments – supported by tailored technical assistance – the report investigates how these mechanisms enable banks and lenders to adopt climate-aligned policies, operational frameworks, and risk management practices.
Through two in-depth case studies from Brazil’s financial sector, the analysis demonstrates how innovative financing structures – including thematic sustainability bonds and large-scale solar generation funding – can advance national decarbonization efforts. These examples highlight actionable pathways for aligning regional finance with global climate targets, such as the Paris Agreement, while addressing local sustainability challenges.
