Making Blended Finance Work for the Sustainable Development Goals

image of Making Blended Finance Work for the Sustainable Development Goals

The global community has spoken loud and clear: more resources must be mobilised to end extreme poverty and mitigate the effects of climate change. Blended finance - an approach to mix different forms of capital in support of development - is emerging as an important solution to help raise resources for the Sustainable Development Goals in developing countries. But scaling up blended finance without a good understanding of its risks could have unintended consequences for development co-operation providers. This report presents a comprehensive assessment of the state and priorities for blended finance as it is being used to support sustainable development in developing countries. It describes concepts and definitions, presents an overview of actors and instruments, and discusses lessons learned from blending approaches, tracking and data, and monitoring and evaluation. Its findings and recommendations are useful for policy makers and practitioners.

'Blended finance will contribute to faster economic growth, but to achieve this it is vital to get donors into alignment.'

Martin Wolf, Chief Economics Commentator, Financial Times

'Official development assistance continues to be a key way to finance efforts aimed at eradicating extreme poverty. However, the challenge is more than governments alone can manage. We must all think, work, finance and deliver development differently to mobilize private-sector resources and expertise to help the world’s poorest and most vulnerable people. Canada continues to promote innovative approaches to finance development and achieve sustainable growth for everyone.'

The Honourable Marie-Claude Bibeau, Canada's Minister of International Development and La Francophonie.

English French


Pooling finance through blended finance facilities and funds

Collective investment or pooled vehicles such as facilities and funds are prominent in the blended finance landscape. This chapter presents results from OECD and Association of European Development Finance Institutions (EDFI) surveys of blended finance funds and facilities carried out in 2015 and 2017. It explores the increasing interest in donor government facilities to pool donor financing for blended finance, highlighting the main trends in the development of these facilities. It also explores blended finance funds that bring together development and commercial investors to invest in projects in developing countries. The chapter also considers to what extent facilities and funds are addressing the SDGs and initial lessons learned.



This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error