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Development finance actors and the private sector will need to work cohesively to reduce the funding gap, reorient current financing, and increase capital resources for food-system transformation. Utilising innovative financing instruments and mechanisms, such as blended finance structures, to create attractive investment opportunities can catalyse food-system transformation through both public and private sector capital. Building the capacity of financial intermediaries to accurately assess risk and deploy appropriate risk-mitigation mechanisms can improve risk perception and lower the transaction cost for deploying capital. Robust, science-based metrics, cost-effective data collection, and monitoring systems are critical to mobilising capital and safeguarding sustainable finance against ‘greenwashing’, engaging in behaviour or activities that make people believe a company is doing more to protect the environment than it really is.
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