ABSTRACT Blended finance has emerged as a strategic solution to the multifaceted challenges of projects that navigate the intricate interplay of water, energy, food, and ecosystems, ultimately contributing to the achievement of Sustainable Development Goals (SDGs). This empirical study explores the key factors influencing blended finance, through private capital mobilization, within the context of water‐energy‐food‐ecosystems (WEFE). For this purpose, a panel data model is used to assess the factors that contribute to successful capital mobilization with regard to WEFE projects. The results suggest that the effective implementation of appropriate financial mechanisms is essential for attracting private capital and fostering sustainable growth, thus influencing a return on investments and risk assessment frameworks. Additionally, economic and business environment factors are found to drive investors' decisions when evaluating environmentally friendly projects. Finally, socio‐political variables also play a crucial role in accelerating blended finance efforts, along with inclusive governance frameworks, community involvement, and transparency.
Sandiumenge et al. (2026) studied this question.