Blended finance (BF) is widely perceived as a key development finance tool to help address challenges associated with mobilizing additional investment for the Sustainable Development Goals (SDGs) in their final decade.
In practice, the OECD DAC Blended Finance Principles for Unlocking Commercial Finance for the SDGs represent the gold standard and consensus among stakeholders ranging from donors, multilateral development banks (MDBs), development finance institutions (DFIs), philanthropies and the private sector. The Principles serve to ensure that BF providers deploy blended finance instruments in a way that meets accepted quality standards and achieves impact.
To bring the Principles to life, the OECD spearheaded the Tri Hita Karana Roadmap for Blended Finance in 2018, rallying stakeholders around implementation in five action areas (depicted below). This paper contributes to action area “Practice”, chaired by Convergence, the European Commission and the European Investment Bank, and focuses on governance of blended finance.