Addressing the Missing Middle in Climate Finance

The missing middle refers to businesses that fall between small-scale venture capital and large institutional funding, particularly in emerging markets. These businesses often possess innovative climate solutions that could significantly impact local communities but struggle to secure the necessary investments. Development finance institutions like the International Finance Corporation (IFC) aim to fill this gap while adhering to their mission and outcome goals. By focusing on strengthening project pipelines and understanding local market challenges, the IFC seeks to unlock funding opportunities for these vital enterprises.