Principle 3

OECD DAC Blended Finance Principles

The OECD needs your involvement to ensure that the Guidance results from a truly collaborative effort by the wide range of stakeholders active in the blended finance landscape. The OECD has now launched a public consultation to allow interested stakeholders to provide feedback and inputs on the Guidance and ensure that all voices and experiences are heard.

We encourage you to send any comments and feedback concerning the Guidance Note for Blended Finance Principle 3 to by Friday 10 July 2020. You can access the draft Guidance Note for Principle 3 below.


Development finance should be deployed to ensure that Blended Finance supports local development needs, priorities and capacities, in a way that is consistent with, and where possible contributes to, local financial market development.

3A - Support local development priorities.

Achieving positive development impact means meeting people’s needs. Blended finance can fulfill local development priorities by enabling the financing of businesses that serve local consumers and create decent jobs. Blended finance should support investments that are aligned with national priorities as is the case with all development finance interventions.

3B - Ensure consistency of blended finance with the aim of local financial market development.

The emergence of efficient local financial markets will be essential to sustainable financing for development. Hence, blended finance should seek opportunities to work with local financial sector actors, where possible, and should avoid approaches that discriminate against the local financial sector.

3C - Use blended finance alongside efforts to promote a sound enabling environment.

A sound enabling environment is a vital condition for mobilising private investment. Blended finance can be a means of achieving development impact in challenging environments, but it can also be an important complement to reform efforts, and should seek to be supportive of them where relevant.

« The need for the effective delivery of finance for development is a critical issue and a core component of achieving the billions to trillions objective; the OECD DAC Blended Finance Principles set out a useful framework which will provide a strong enabling environment. Their adoption by the DAC is an important milestone. »