India’s energy transition financing needs are significant, and achieving its targets depends on getting private capital to flow towards the transition at a significant pace. Blended finance involves leveraging scarce public capital to mobilise private capital, many times the quantum of the public capital. This can effectively bridge the large investment gap on the road to India’s 2070 net zero target.
Blending usually requires the public capital portion to be offered as grants or on concessional terms. Will developed countries that have significantly under-delivered on their promise of providing USD 100 billion per year of climate finance to developing countries seize this opportunity to make up for lost time?