Content for Mains Enrichment (CME)
Blended finance is a financing mechanism that combines public, private, and philanthropic funds to support social and environmental projects.
Significance: Blended finance can help attract private capital to projects that are otherwise difficult to finance (e.g., projects related to the fulfilment of SDGs), and help achieve social and environmental objectives while generating financial returns for investors.
Example: Sustainable Access to Markets and Resources for Innovative Delivery of Healthcare (Samridh) is a blended financing entity, that mobilized a capital pool of $300 million to offer grant and debt financing provisions to healthcare enterprises and innovators during the COVID-19 pandemic.
- The scheme was launched by the Indian government, USAID, The Rockefeller Foundation etc.
Usage: The example shows an innovative way to finance social and environmental projects.