British International Investment (BII) and Boston Consulting Group (BCG) have unveiled a groundbreaking toolkit aimed at simplifying blended finance structures and unlocking billions in private capital for climate action and development. This initiative is poised to enhance ESG-aligned investment and promote global carbon neutral strategies, particularly in underserved emerging markets. 

Blended finance—a combination of public, philanthropic, and private capital—plays a critical role in advancing climate resilience and sustainable development. However, the complex design of such funds has historically limited private sector participation, attracting only around $15 billion globally per year. BII and BCG’s new framework directly addresses these complexity barriers. 

The report, Scaling Blended Finance, introduces two transformative tools. First, a fund typology identifies five archetypes that classify over 90% of existing blended finance structures, offering fund managers accessible, real-world templates to streamline fund development. Second, a scorecard standardizes the assessment of fund quality and alignment with diverse investor goals, ensuring greater transparency and predictability in ESG investment vehicles. 

“This is about transforming blended finance from bespoke to scalable,” said BII CEO Leslie Maasdorp. “By simplifying fund design, we reduce friction and bring institutional capital where it’s most needed.” 

BCG’s Global Head of Social Impact, Rich Hutchinson, emphasized that the tools bring structure and shared language to a traditionally fragmented field, allowing fund managers and investors to collaborate more effectively. 

As ESG investing evolves and carbon neutral strategies become central to financial decision-making, BII and BCG’s toolkit offers a vital blueprint. By aligning investment design with investor expectations and offering clear evaluation standards, the framework is expected to catalyze high-integrity investments across climate-sensitive sectors and geographies—paving the way for scalable, measurable impact. 

Sources: 

https://esgnews.com/bii-bcg-launch-toolkit-to-unlock-billions-in-private-capital-for-climate-and-development-finance/ 

https://www.bii.co.uk/en/news-insight/news/new-report-provides-toolkit-to-turbocharge-investment-into-development-and-climate-finance/