Catalyzing private finance for climate action is essential to achieving goals for limiting global warming. USAID can play a pivotal role in climate action across partner countries by increasing funding for activities that catalyze and crowd in private capital to climate-focused investments. The Intergovernmental Panel on Climate Change (IPCC) estimates USD 1.6 trillion is needed annually to keep global warming to the 1.5-2°C target range; only 38 percent of this was funded in 2019. Blended finance, the strategic use of public resources to attract private capital, represents an opportunity for USAID to help close this gap and dramatically increase the scale and scope of climate finance in the coming years.