Liechtenstein Finance published an article by Simon Tribelhorn, also of the Liechtenstein Bankers Association, arguing that blended finance can channel more private capital into sustainable development and that Liechtenstein has the market access and financial infrastructure to serve as a leading location for such structures. The article defines blended finance as the use of public or philanthropic funds to de-risk development-oriented projects for private investors, using tools such as grants, guarantees and first-loss tranches across instruments including debt, equity and technical assistance. It cites development finance institution data indicating that in 2021 around USD 1.9 billion in concessional capital mobilised USD 4.6 billion of private investment, a 50% increase in private sector participation from the prior year, and highlights ‘minimum concessionality’, transparency, impact monitoring and more standardised structures as key to scaling. On Liechtenstein’s positioning, Tribelhorn points to European Economic Area membership alongside ties to the Swiss market, a concentration of family offices, responsible investors and foundations, and regulatory and legal frameworks described as established but flexible, as factors supporting the development and domiciliation of impact funds, climate finance vehicles and social bond-type platforms aligned with European and global standards.

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