Accelerating Impact Investments for Climate and Nature in Asia 2025

Although still a relatively new concept in Asia, cross- sector partnership models have proven successful in attracting commercial capital, even for high-risk investments. The 4Ps model (public-private- philanthropic partnerships) is gaining increasing traction, as it allows for the blending of financial and non-financial resources with philanthropic funds. These funds can be allocated, for example, to first- loss capital, absorbing the initial risks of potentially high-risk investments, as shown in case study 11. Philanthropic capital is particularly valuable because it is flexible, risk-tolerant, patient and driven by long-term values and outcomes rather than short- term financial returns. This allows for the testing of innovative approaches, with successful outcomes serving as a springboard to attract larger public and private investments that can drive systems- level change. Philanthropic capital can also be used to reward “risk-averse” partners by compensating them for accepting higher initial risks, which in turn de-risks the investment for other investors. This makes the investment more attractive to finance-first partners, incentivizing broader participation.25 By adjusting for risk, this model helps mitigate potential losses, while the capital can be used to build the capacity needed to deliver both social and environmental impact. For start-ups, philanthropic funds can serve as a testing ground, allowing prototypes to mature to a stage where they are ready for scaling by public and private sectors, transitioning from concept to market-ready solutions. The SDG Loan Fund (see case study 11), for example, illustrates how blended finance can be effectively used to mobilize private investment at scale, supporting emerging and frontier markets in achieving the Sustainable Development Goals (SDGs), with a particular focus on climate-related objectives. As well as offering funding and resources, the public sector can play a critical role by creating enabling policies and regulations to accelerate the growth of impact investments. Governments benefit not only from advancing their climate goals but also from protecting natural resources, improving livelihoods, safeguarding public health and strengthening economic resilience. The 4Ps model is gaining increasing traction, as it allows for the blending of financial and non- financial resources with philanthropic funds. Accelerating Impact Investments for Climate and Nature in Asia 19