{"id":9402,"date":"2026-04-27T22:09:34","date_gmt":"2026-04-27T22:09:34","guid":{"rendered":"https:\/\/staging.openvaluefoundation.org\/?p=9402"},"modified":"2026-04-27T22:09:34","modified_gmt":"2026-04-27T22:09:34","slug":"blog-post-94","status":"publish","type":"post","link":"https:\/\/openvaluefoundation.org\/en\/2026\/04\/27\/blog-post-94\/","title":{"rendered":"Blog post 94"},"content":{"rendered":"

En GAWA Capital<\/a> We have always argued that impact investing is essential for achieving the United Nations Sustainable Development Goals (SDGs). Financial investments drive the world's economy. If imbued with purpose, they can be a powerful tool for generating profound change in the economy, so that it serves people and the planet.<\/p>\n\n\n\n

The growth in impact investment, in terms of assets under management, shows that this shift is starting to happen. In the tenth edition of the Global Impact Investing Network (GIIN) report<\/a> Published a few weeks ago, the global sector is estimated to be worth $715 billion by the end of 2019. This surpasses the $400 billion that the GIIN's first report in 2010 estimated for 2020, so growth is higher than expected.<\/p>\n\n\n\n

This figure of 715 billion represents a 42% increase on the previous year\u2019s figure, which, if projected through to 2030, would mean that the 25 trillion dollar funding gap required to meet the SDGs could actually be bridged. These positive figures were corroborated by the International Finance Corporation<\/a>announces that the private part of impact investing reached \u00a3200 billion at the close of 2019, reflecting the leading role the private sector must take in a field that has historically been dominated by public investment, principally from Development Finance Institutions.<\/p>\n\n\n\n

Amidst this climate of great hope, COVID struck unexpectedly and changed the game. The investment gap required to meet the SDGs has risen from 25 trillion to an estimated 50 to 70 trillion dollars \u2013 a colossal sum to be covered in less than a decade! The tragic human reality behind this increased funding requirement means that 500 million people will fall into extreme poverty and 42% of micro and small businesses will disappear over the next six months.<\/p>\n\n\n\n

Without a doubt, this immense challenge demands the involvement of all types of organisations, both public and private, and the entire spectrum of available capital, from private and institutional to public capital. In other words, acting as recommended by SDG 17 on partnerships for development. Unfortunately, this time leadership will not fall to the public sector, as public investment will be limited by the recessionary downturn in global economies. The main driver of change will have to come from the mobilisation of a huge amount of private investment.<\/p>\n\n\n\n

The way to trigger this mobilisation of private capital should come from blended finance mechanisms. Blended finance consists of bringing together different investment tranches with different profitability-risk-impact profiles. In these types of structures, public funds make an investment designed to catalyse private investment, either by assuming greater risk or by assuming the same risk but foregoing part of the return in favour of private investment. This is done by subscribing to \u2018first loss\u2019 tranches, offering guarantees, or providing flexible junior debt at subsidised rates.<\/p>\n\n\n\n

Blended finance has already mobilised some 120 million in private capital since the SDGs were formulated, accounting for 60% of private investment with a social impact. Over the next decade, it can demonstrate its ability to mobilise private funds even more effectively. To this end, the \u2018blended finance\u2019 facilities of multilateral organisations such as the European Union and the United Nations will need to be allocated greater resources. These public resources will be multiplied by four thanks to private capital, which will flow in as more and more investors seek to give their investments a purpose, whilst private banks and wealth managers will meet this growing demand from their clients.<\/p>\n\n\n\n

En SpainNAB<\/a>, the Spanish advisory council for impact investment, we are fostering blended finance and the distribution of impact products. We are also designing a clear framework to distinguish what is truly impact investing from what is termed \u201cgreen washing\u201d or \u201cimpact washing\u201d. Only true impact investment, with a transformative purpose, can resolve the market failures preventing us from achieving the SDGs by 2030.<\/p>\n\n\n\n

From SpainNAB, we will work to ensure that the public and private sectors are up to the challenge we face. But above all, we will not stop dreaming of the world that the SDGs paint for us by 2030, which serves as our inspiration to continue our work.<\/p>","protected":false},"excerpt":{"rendered":"

En GAWA Capital siempre hemos defendido que la inversi\u00f3n de impacto es esencial para cumplir los Objetivos de Desarrollo Sostenible de Naciones Unidas (ODS). Las inversiones financieras mueven la econom\u00eda del mundo. Si se les dota de prop\u00f3sito, pueden ser una herramienta poderosa para generar un profundo cambio en la econom\u00eda, para que sirva a las personas […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[23],"tags":[],"class_list":["post-9402","post","type-post","status-publish","format-standard","hentry","category-blog-post"],"acf":[],"_links":{"self":[{"href":"https:\/\/openvaluefoundation.org\/en\/wp-json\/wp\/v2\/posts\/9402","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/openvaluefoundation.org\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/openvaluefoundation.org\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/openvaluefoundation.org\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/openvaluefoundation.org\/en\/wp-json\/wp\/v2\/comments?post=9402"}],"version-history":[{"count":1,"href":"https:\/\/openvaluefoundation.org\/en\/wp-json\/wp\/v2\/posts\/9402\/revisions"}],"predecessor-version":[{"id":9404,"href":"https:\/\/openvaluefoundation.org\/en\/wp-json\/wp\/v2\/posts\/9402\/revisions\/9404"}],"wp:attachment":[{"href":"https:\/\/openvaluefoundation.org\/en\/wp-json\/wp\/v2\/media?parent=9402"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/openvaluefoundation.org\/en\/wp-json\/wp\/v2\/categories?post=9402"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/openvaluefoundation.org\/en\/wp-json\/wp\/v2\/tags?post=9402"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}