This report, developed by the UNDP Climate Finance Network and Convergence, introduces a strategic framework designed to help governments systematically strengthen the enabling environment for blended finance. With a focus on emerging economies in South and Southeast Asia, it supports shifting from isolated transactions toward a repeatable, scalable market mechanism.
The Framework offers practical and actionable guidance to governments and policy makers to improve the enabling environment for blended finance at a country level across six interconnected pillars:
- National-level Planning, Coordination, and Alignment
- Policy and Regulatory Environment
- Supply and Deployment of Concessional Capital
- Market Development and Private Sector Mobilization
- Project Pipeline Development and Standardization
- Information Architecture
Together, these pillars provide governments with a structured approach to diagnosing constraints, prioritizing reforms, and sequencing actions based on national circumstances. The Framework does not prescribe a single model, but rather a starting point to build country-level reform and investment strategies.
The Strategic Framework for Blended Finance was made possible by support from the UK government’s flagship Climate Action for a Resilient Asia (CARA) programme to build climate resilience in South Asia, Southeast Asia, and the Pacific islands, and the Government of Sweden through the Swedish International Development Cooperation Agency (Sida).
