This report, developed by the UNDP [Climate Finance Network](https://go.undp.org/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:
1. National-level Planning, Coordination, and Alignment
2. Policy and Regulatory Environment
3. Supply and Deployment of Concessional Capital
4. Market Development and Private Sector Mobilization
5. Project Pipeline Development and Standardization
6. 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).

Convergence-UNDP Report Strategic Framework for Blended Finance FINAL

This report, with a focus on emerging economies in South and Southeast Asia, introduces a strategic framework designed to help governments systematically strengthen the enabling environment for blended finance, shifting from isolated transactions toward a repeatable, scalable market mechanism.

Strategic Framework for Blended Finance

Convergence and UNDP