Blended Finance

Blended Finance

Unlocking Commercial Finance for the Sustainable Development Goals

Blended finance will contribute to faster economic growth, but to achieve this it is vital to get donors into alignment.  Martin WOLF Chief Economics Commentator, FINANCIAL TIMES
The private sector recognises that donors need an effective framework in order to take blended finance forward to the next level, these Principles provide the step in that direction, which now needs to be taken. Julia PRESCOT Head of Strategy, MERIDIAM
The OECD DAC Principles are another important step forward to align the international community, and especially, the key development participants, around mobilizing the funding that can help deliver the SDGs. H.E. LUHUT PANJAITAN Coordinating Minister for Maritime Affairs,


Blended finance is the strategic use of development finance for the mobilisation of additional finance towards sustainable development in developing countries.    


Blended finance can help bridge the investment gap for the SDGs, but requires a common framework.

Delivering the 2030 Agenda and the Paris Agreement will require all sources of finance - development and commercial  - to be scaled up.  Official Development Assistance (ODA) continues to play an indispensable role in financing the Sustainable Development Goals (SDGs) and to leave no one behind. However, ODA can be used more effectively in order to catalyse and mobilise private resources to finance sustainable development.

Mobilising additional capital that would not otherwise support development outcomes is increasingly required to shift the trillions needed to achieve the SDGs. Blended finance is an approach aiming at attracting commercial capital towards projects that benefit society while providing financial returns to investors.

For blended finance to work effectively, a common policy framework and guidance are essential. The OECD DAC Blended Finance Principles for Unlocking Commercial Finance for the Sustainable Development Goals are a policy tool for all providers of development finance - donor governments, development co-operation agencies, philanthropies and other stakeholders. They were endorsed at the Development Assistance Committee (DAC) High Level Meeting on 31 October 2017.

Putting Principles into Practice

The OECD is currently working on more detailed guidance for policy makers to implement the OECD DAC Blended Finance Principles. The guidance will provide good practice examples, support the design and implementation of effective blended finance programmes at the policy level and facilitate accountability.

The Blended Finance Principles will be used inform our key partners such as the UN, EU and World Economic Forum in progressing blended finance best practices, including through fora such as the G20 and G7.

The OECD needs your involvement to ensure that the Guidance is 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 on the Guidance and ensure that all voices and experiences are heard.  We look forward to engaging with you to deliver a comprehensive and fit-for-purpose Policy Guidance.

Join the public consultation on the Blended Finance Principles Guidance

You can access the draft Guidance Notes for each of the 5 Principles simply by clicking into each of the Principles below. We encourage you to send any comments and feedback to