Only 22% of Climate Blended Finance Deals Integrate Gender Considerations, Report Finds

A new report from the Catalytic Climate Finance Facility Learning Hub finds that 22% of roughly 550 climate blended finance deals in Convergence's Historical Deals Database are gender-responsive, below the 31% rate seen across blended finance as a whole. The report identifies two principal strategies — monetising gender co-benefits through gender credits and combining technical assistance with financial incentives — to close the gap.

The CC Facility report analyses gender-responsive energy sector blended finance transactions and identifies several structural barriers. Investors frequently approach climate and gender objectives in silos, being proficient in one but not the other. Smaller funds without large technical assistance facilities and institutions with limited monitoring capacity tend to prioritise only one impact objective. A lack of standardised gender metrics further complicates structuring and measurement, while limited or non-disaggregated data makes globally recognised criteria difficult to apply in diverse contexts.

Two case studies illustrate gender credit monetisation. The Clean Impact Bond, launched by Sistema.bio in 2022, finances SMEs distributing clean cooking appliances across Africa. Its outcome buyer purchases health and gender co-benefits as a credit, providing a quantified revenue stream for gender impact in a climate vehicle. The W+ Standard, issued by WOCAN, allows carbon reduction projects to certify women's empowerment contributions and sell them at a premium to buyers seeking gender equality co-benefits, with a requirement that at least 20% of the credit price be provided directly to women in the project community.

For technical assistance and financial incentives, the report highlights the Beyond Finance Asia-Pacific Facility, which uses TA to incorporate a gender lens in climate adaptation product development and triggers interest rate reductions when gender KPIs are met. Deetken Impact's gender scorecard covering leadership, workplace equity, professional development, value chain, and community engagement is used to assess and improve gender outcomes in large-scale solar projects, with IDB Invest providing financial incentives through lower interest rates linked to climate and gender milestones. CPI views these complementary approaches as scalable models for broader adoption in blended climate finance.

Key figure — 22% of climate blended finance deals are gender-responsive