Course Outline

Module 1: Introduction to Blended Finance and the SDG Funding Gap

• The scale of the funding need for climate action and environmental protection.

• Core principles of blended finance: additionality, crowding-in, impact measurement.

• The role of DFIs, philanthropies, and governments as catalytic capital providers.

• Exercise: Identifying the "bankability gap" in a renewable energy project case study.

Module 2: Blended Finance Instruments and Structures

• Senior/Subordinated Debt: credit enhancement through first-loss capital.

• Guarantees and Insurance: mitigating political and performance risk.

• Technical Assistance Grants: funding for project preparation and capacity building.

• Case Study: Deconstructing a real-world blended finance structure for a sustainable forestry fund.

Module 3: The Blended Finance Deal Cycle

• Project preparation and pipeline development.

• Sourcing catalytic capital and attracting commercial co-investors.

• Due diligence, financial modeling, and legal structuring.

• Workshop: Playing the roles of different investors in a simulated deal negotiation.

Module 4: Risk Mitigation and Impact Measurement

• Identifying and allocating key risks (currency, regulatory, technology) in environmental projects.

• Aligning financial returns with environmental impact metrics.

• Exercise: Developing a risk matrix and mitigation strategy for a watershed conservation project.

Module 5: Building a Blended Finance Proposal

• Key components of an investment teaser and a detailed information memorandum.

• Pitching to different types of capital providers.

• Final Project: Structuring a high-level blended finance proposal for a specific environmental project (e.g., waste-to-energy, regenerative agriculture).