‘Blended Finance’ Could Lift Sustainable Development by $1 Trillion

‘Blended Finance’ Could Lift Sustainable Development by $1 Trillion

An additional $1 trillion could be found for the UN’s Sustainable Development Goals if development banks focus on making investments digestible for private pools of capital.

That’s according to a report by the Blended Finance Taskforce released Tuesday at the annual World Economic Forum conference in Davos, Switzerland. The mix of public and private capital is dubbed “blended finance.”

“Action is needed end-to-end across the whole investment system to scale up the use of blended finance if we are serious about closing the funding gap for the Sustainable Development Goals,” said Mark Malloch-Brown, chair of the Business & Sustainable Development Commission, one of the authors of the report.

The Sustainable Development Goals are 17 objectives outlined in 2015 by the United Nations. They span a wide range of issues from clean energy and climate change to hunger to health and are meant to collectively reduce poverty and protect the environment.

There is currently a funding gap estimated to be about $2 trillion to $3 trillion for these goals. It has been estimated that public sources could provide half, but the remainder would have to be raised from the private investors.

Blended finance already exists and is estimated to be a $50 billion market, according to the report. Development banks already work with private investors in the renewable energy industry. One recent example was when institutions such as Germany’s KfW and Inter-American Development Bankloaned money with a group of commercial banks including Mitsubishi UFJ Financial Group Inc. and Sumitomo Mitsui Banking Corp to finance two wind farms in Chile.

This kind of collaboration needs to be significantly increased, according to Jeremy Oppenheim, programme director of the Business & Sustainable Development Commission and founder of SYSTEMIQ, an impact-investment firm.

“The multi-lateral development banks currently mobilize less than $1 of private capital for every dollar they invest,” he said. “This ratio would need to more than double to get anywhere close to the trillion-dollar financing target.”

Measures that can be taken include structuring an investment so the development bank is paid after the institutional investor is compensated, reducing the risk, and pooling assets to create portfolios of a size that pension funds and insurers can work with. The World Bank also provides insurance against political risk through a system known as MIGA.

The Blended Finance Taskforce is advocating for development banks to all set ambitious targets for private capital mobilization, which is believes could significantly contribute to narrowing the funding gap.

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Dilek Bil spent 33 years in both corporate and entrepreneurial ventures.

Worked 10 years in banking for American Express Bank, BNP-Ak-Dresdner Bank and Société Générale. Her years in financial industry were mostly concentrated on introducing new and innovative financial instruments to help grow volume of trade finance, especially for food and  agricultural products to catalyze  a shared value economy.

Co-founded Kangaroo İletişim in 1994, a brand strategy and advertising agency, worked with international brands such as Volvo, VW and Garanti. End of 2011, spun-off advertising and re-structured her business as  a sustainability consultancy and communications agency. She currently advises companies in creating, defining, building, measuring more purposeful businesses, strategies, brands and compelling communications.

Dilek Bil also serves on the Board of Akmerkez Gayrimenkul Yatirim Ortakligi AS., where she leads the ‘Risk’ and ‘Corporate Governance’ committees.

Dilek Bil created and anchored a weekly TV show on Cnbc-e, named  “Sürsün Bu Dünya”. She interviewed more than 40 opinion leaders  -corporate CEO’s, policy makers, academicians, NGO presidents-  to encourage and show them a new direction of  a sustainable economic model with market opportunities and profitabilty.

Dilek Bil is among inspirational leaders in women empowerment and sustainability, in pursing her task, she also presents at conferences  as well as to students.

Dilek Bil has been actively working in civil society:

Recipient of the “2017 Women of the Decade in Media and Social Change” award by the Women Economic Forum.

Honorary board member and former president of KAGIDER (Women Entrepreneurs Association of Turkey).

Founding member and the Vice-President of FODER (Financial Literacy and Inclusion Association of Turkey).

Member of the board of trustees WWF-Turkey.

Member of the Strategic Advisory Group for International Council on Women’s Business Leadership.

Former board member of Turkish-British Business Council of DEIK.

Works closely with many civil society organizations: UNSDSN
German Bioeconomy Council, ALL Ladies League

Dilek Bil is an amateur in gastronomy and oenology.

Board member of Accademia Italiana della Cucina.

Founding member of 28-year-old Wine Association of Turkey,

Dilek Bil graduated from Northport High School-New York and has a BA degree from University of North Texas U.S.A., married and has a son.