Blended finance is the strategic use of development finance for the mobilisation of additional finance towards sustainable development in developing countries.
Understanding the indispensable role of Official Development Assistance (ODA) in financing the SDGs, the international community acknowledged the need for significant additional development finance – and accorded a prominent place to private sector participation. The vision underpinning the 2030 Agenda is broad and ambitious, calling for an equally broad and ambitious financing strategy.
The OECD Development Assistance Committee (DAC) in February 2016 agreed to develop ‘an inclusive, targeted, results-oriented work programme’ on blended finance :
Evidence based: Collate evidence and lessons learned on blended finance with a focus on targeting private finance and the use of blended
International production, trade and investments are increasingly organised within so-called global value chains (GVCs) – all activities from product conception to its final use – where the different stages of the production process are located across different countries.