The Blended Finance Playbook from the UN Global Compact marks a major step for corporate leadership. It will help businesses assume a proactive approach to deal structuring. Additionally, it focuses on the fast-growing $24 billion hybrid finance sector.
The UN Global Compact CFO Coalition for the SDGs unveiled the playbook today. It will help real economy firms go beyond being passive participants and structure financial deals. The financial deals are aligned with development goals at the national level.
Sanda Ojiambo, CEO and Executive Director of the UN Global Compact, commenting at the Playbook’s launch, said: “The private sector has a unique and largely untapped role to play in blended finance, but as an architect of deals that drive systemic impact across industries and markets. This Playbook is the operational tool that enables finance leaders to step into that role. At a time when public balance sheets are under pressure, and the SDG financing gap stands at $4 trillion annually, we cannot afford to leave corporate leadership on the sidelines. Nor can we afford financing models that are disconnected from country priorities. This Playbook helps align private capital with nationally driven pathways to resilience and growth.”
Bridging the Gap in Blended Finance Participation
Hybrid finance combines public or philanthropic funds with private capital. It therefore makes the investments in such markets viable. Within the last five years, the market has grown remarkably. Inflows have increased from $14 billion in 2020 to $24 billion in 2024. However, much advice has been geared towards the capital providers.
In light of this, the playbook fills this crucial gap. It was rolled out during the London Climate Action Week in 2026. Moreover, it offers practical resources that are based on real-life examples. Some of the examples include Convergence and industry experts. Moreover, the playbook also focuses on energy and infrastructure as important sectors. They are responsible for more than 70% of corporate hybrid finance.
Mahar Al-Haffar, CFO of Cemex and co-Chair of the Advisory Board for the UN Global Compact CFO Coalition for the SDGs, said: “Blended finance can play a critical role in accelerating investment into sustainable infrastructure and industrial decarbonization, particularly in markets where risks and financing costs can otherwise slow progress. But while the opportunity is significant, the structuring process can often be complex and resource-intensive. Clearer, more standardized tools are essential to help companies engage more confidently and efficiently. This Playbook is an important step forward because it helps translate blended finance from a niche financing concept into a practical mechanism that businesses can use to support long-term growth, resilience, and sustainability.”
Koushik Chatterjee, Executive Director and CFO of Tata Steel and co-Chair of the Advisory Board for the UN Global Compact CFO Coalition for the SDGs, said: “Blended finance has the potential to become one of the most powerful tools in sustainable finance, particularly in supporting capital-intensive decarbonization and transition initiatives. Our experience demonstrates that large-scale industrial transformation is only possible when governments, businesses, and financial institutions work in close partnership to align long-term economic resilience with sustainability objectives. This Playbook is important because it gives companies practical guidance on how to engage earlier, structure transactions more effectively, and help shape projects that deliver both commercial viability and measurable impact.”
The playbook also contains case studies of international firms, including FCC Construcción, Safaricom, and Tata Steel. Apart from that, the playbook provides tools for risk management and capital structuring. Moreover, there is also a checklist of due diligence in the preparation of projects. Thus, the Hybrid Finance Playbook helps business people to act confidently.
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News Source: PRNewswire.com
