Blended Finance -bridging the Sustainable Development Finance Gap

This OECD brief explains how blended finance can help close the multi-trillion-dollar annual financing gap for the Sustainable Development Goals (SDGs). It defines blended finance as the strategic use of development finance to mobilise additional commercial finance for sustainable projects in developing countries. The document outlines the OECD's framework and guiding principles for unlocking private investment, emphasizing the effective design of public instruments, robust risk-sharing mechanisms, and strong coordination among development partners. The goal is to maximize development impact while minimizing concessionality and avoiding market distortion.