Blended Finance is the use of catalytic capital from public or philanthropic sources to increase private sector investment in sustainable development.
Current levels of development financing for sustainble development goals (SDGs) are not sufficient.
Watch this 2 minute video from our sponsor Bank of America explaining the importance of blended finance
The 5 Steps to Designing a Blended Finance Project
The Organization for Economic Cooperation and Development (OECD) outlined 5 principles to designing and implementing effective and transparent blended finance programs
All development finance interventions, including blended finance activities, are based on the mandate of development finance providers to support developing countries in achieving social, economic, and environmentally sustainable development
Does the project maximize development outcomes?
Does the project articulate blended finance objectives?
Does the project commit to high quality standards?
Development finance in blended finance should facilitate the unlocking of commerical finance to optimize total financing directored towards ddvelopment outcomes.
Does the project ensure development additionality?
Does the project ensure financial additionality?
Does the project ensure commerical sustainability?
All development finance interventions, including blended finance activities, are based on the mandate of development finance providers to support developing countries in achieving social, economic, and environmentally sustainable development
Does the project support local development initiatives?
Does the project support local government development?
Does the project support promotion of sound enable environment?
All development finance interventions, including blended finance activities, are based on the mandate of development finance providers to support developing countries in achieving social, economic, and environmentally sustainable development
Does the project support local development initiatives?
Does the project support local government development?
Does the project support promotion of sound enable environment?
All development finance interventions, including blended finance activities, are based on the mandate of development finance providers to support developing countries in achieving social, economic, and environmentally sustainable development