Blended finance uses a mix of public and private finance to fund projects with high development impact. Public finance is used to crowd in private sector financing that would otherwise not be available to such projects. Thus, blended finance acts as a multiplier for public funds by drawing in private finance through strategies that lower the risk of private investment. This session, jointly organized with the United Nations Development Programme (UNDP), the United Nations Department of Economic and Social Affairs (UNDESA) and the Global Impact Investing Network (GIIN), will provide an overview of the growth and development of blended finance in recent years, the policy dimension that facilitates the use of blended finance, and the opportunities for blended finance to contribute to the financing of the SDGs.
Issues for the debate:
- How can blended finance help to mobilize and scale up private and commercial resources for sustainable development and climate action in developing countries?
- Which types of blended finance instruments are currently in use?
- What are lessons learned from different approaches to blending, monitoring and evaluation?