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The concept of " blended finance" has been around for a while, but it's only recently making its way into the mainstream.
Here's what you need to know about it: It's "a new way of looking at philanthropy," explains the New York Times.
In short, it's "a means of driving private investment toward sustainable development goals, if key challenges around awareness, policy incentives, and aggregating deals to mobilise capital at scale can be addressed."
In short, it's a way to raise money for projects that have a positive social or environmental impact, and it has the potential to grow "exponentially in Asia to meet the region's substantial development funding needs," says Anthony Gao of Pictet Wealth Management, per AsianInvestor.
Blended finance works by pairing private investors with governments and nonprofits to raise money for projects that have a positive social or environmental impact.
For example, the Bill and Melinda Gates Foundation has committed $30 billion to fighting poverty in Africa, while the Global Fund to Fight AIDS, Tuberculosis, and Malaria in Latin America and the Caribbean has committed $30 billion to fighting HIV/AIDS in Africa, per the Times.
But it's not just in Africa.
A report from the World Bank notes that
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