on the other hand poor vetting of private local partners inadequate enforcement of environmental safeguards and insufficient accountability on the part of development finance endusers can lead to a lack of tangible positive environmental impacts if not actually produce negative outcomes oxfam box highlights one type instrument used in financial intermediation ie credit lines challenge funds financial contribution to a project is usually small compared to the overall size of the project but sufficient to improve its risk profile and financial viability irwin and porteous challenge funds typically require the grantee to match a portion of the funds disbursed so as to ensure ownership and commitment to success