UNDP and the UN Capital Development Fund convened a two-day regional dialogue in Bangkok to help Asia-Pacific countries scale blended finance for inclusive climate action. The event, titled “From Policy to Capital: Scaling Blended Finance for Inclusive Climate Action,” brought together governments, regulators, financial institutions and civil society to explore how public and catalytic finance can attract private investment for climate and development priorities.
The dialogue was supported by Sweden through Sida and the United Kingdom’s Foreign, Commonwealth & Development Office through the CARA Programme. More than 70 representatives from ministries of finance, national development banks, private financial institutions and civil society participated in the event, reflecting growing regional interest in financing solutions that can turn climate commitments into practical investments.
A major focus of the discussions was the financing gap between national climate targets and the capital needed to achieve them. Countries across the region have set climate goals through Nationally Determined Contributions and National Adaptation Plans, but many still face challenges in mobilizing sufficient investment for implementation, especially in climate adaptation and resilience.
Blended finance was highlighted as a key tool for closing this gap. By using public or concessional finance strategically, countries can reduce investment risks and attract private capital into sectors and communities that are often underfunded. This approach is especially important for climate adaptation, where commercial investment can be difficult to mobilize without public support or de-risking mechanisms.
UNDP emphasized that countries need stronger policy and investment readiness, investable project pipelines and practical mechanisms to mobilize capital for climate action. Its Strategic Framework for Blended Finance was presented as a methodology for building scalable financing solutions and helping governments make blended finance a repeatable part of national climate finance systems.
UNCDF highlighted the importance of ensuring that climate finance reaches markets and communities that are frequently overlooked. This includes micro, small and medium enterprises, women-led businesses and climate-vulnerable populations that are often most exposed to climate impacts but face barriers in accessing finance.
The dialogue also explored the role of green guarantees and other targeted de-risking tools. Participants discussed how these instruments can help unlock private investment for local adaptation, resilient businesses and inclusive climate solutions while improving confidence among investors and financial institutions.
Representatives from the UK and Sweden stressed the importance of partnerships in moving from traditional aid models toward investment-focused cooperation. They emphasized that public and concessional finance should work more effectively with private capital to protect vulnerable communities and translate national climate priorities into bankable opportunities.
The event reinforced the need to strengthen national financing ecosystems across Asia-Pacific. Participants discussed the importance of clear policy signals, transparent governance, stronger regulatory frameworks and coordinated institutions to attract private investors and support long-term climate finance deployment.
Moving forward, UNDP and UNCDF will work with partners to turn the commitments made during the dialogue into country-level support. Their efforts will focus on developing integrated financing solutions, building investable project pipelines and scaling inclusive climate action that benefits vulnerable communities, MSMEs and women-led enterprises across the region.
