How the combination of public, private, and philanthropic capital can unlock funding for impact projects in vulnerable territories
The Amazon holds immense potential for businesses that conserve the forest while strengthening local communities. These are initiatives range from sustainable forestry and agro-extractivism to community-based tourism and regenerative agriculture.
However, most of these enterprises face a major challenge: limited access to credit and investment, as they are often deemed “high risk” by traditional banks and investors.
In this context, blended finance emerges as a strategic solution. It combines philanthropic, public, and private capital to reduce risk and attract investment in sustainable enterprises. By taking on the “first risk,” organizations like NESsT create the necessary conditions for banks and private investors to feel confident in supporting these businesses, thus increasing their access to credit and growth capital.
This model is grounded in three key pillars:
Impact: A strong commitment to sustainable development and social inclusion;
Risk-adjusted returns: Different types of investors take on varying levels of risk aligned with their expected returns;
Leverage: Catalytic capital assumes the first risk, reducing the exposure of private investors.
This arrangement can include guarantees, cross-subsidies, technical assistance, patient capital, and hybrid instruments always with the goal of making projects more attractive and financially viable.
In the Amazon, blended finance can be transformative
The blended finance model is particularly effective for enterprises in the Amazon’s bioeconomy value chains, enabling businesses led by women, Indigenous peoples, and traditional communities to grow with more stability and impact.
One example is NESsT’s support for sociobiodiversity cooperatives.
Photo: ASPROC
Associação dos Produtores Rurais de Carauri (ASPROC), located on the banks of the Juruá River, supports local riverine communities to produce and sell biodiverse products sourced exclusively from the rainforest, including pirarucu fish, manioc flour, natural rubber, and açaí. NESsT provided funding to ASPROC to support the renovation of a fish processing facility that had part of its structure compromised, enabling its rapid recovery and return to operation.
Additionally, NESsT's investments to Associação dos Trabalhadores Agroextrativistas da Ilha das Cinzas (ATAIC) and Associação dos Agropecuários de Beruri (ASSOAB) funded the opening a semi-industrial kitchen and a natural oil processing factory, respectively.. These investments in basic infrastructure helped prepare these community-based enterprises to access bank loans for working capital in the future.
Photo: CooperSapó
In the case of CooperSapó, business and governance support from NESsT played a key role in strengthening the cooperative’s management and enabling it to access new funding sources that require greater risk exposure.
When well-structured, the blended finance model helps transform promising initiatives into high-impact solutions, connect those in need of support with purpose-driven investors, and enable a forest-based economy that combines environmental preservation, social justice, and economic return.
To simplify the understanding of this mechanism, NESsT has developed an explanatory infographic that visually illustrates how blended finance works in practice and NESsT’s role within the impact ecosystem in the Amazon. The tool helps translate financial concepts into accessible language, making it especially useful for entrepreneurs, policymakers, partners, and anyone interested in understanding how to accelerate the development of the Amazon bioeconomy through innovative financing solutions.
Learn more about NESsT's work in the Amazon and how we are supporting sustainable businesses with innovative financial solutions.
Read the full report and discover NESsT’s recommendations to unlock funding for community-led bioeconomy in the Amazon:
Acest blog face parte dintr-o serie care explorează perspectivele, temele-cheie și abordările care stau la baza publicației NESsT"Deblocarea potențialului ecosistemului global de finanțare pentru a investi într-o bioeconomie durabilă în Amazon din perspectiva comunităților locale. Informat de vocile amazoniene și de conversațiile cu comunitatea globală de finanțare, raportul identifică nouă recomandări în două domenii cheie pentru investitorii publici și privați axați pe impact pentru a îmbunătăți orientarea, eficacitatea și eficiența finanțării lor pentru bioeconomia amazoniană. Prin această serie de zece părți, ne propunem să aducem aceste oportunități în conversații mai largi și spații de discuție diverse, amplificând raza de acțiune a comunităților amazoniene și vocile, experiențele și soluțiile lor.
