Blended Finance | UNC Kenan-Flagler Business School

Blended Finance is the use of catalytic capital from public or philanthropic sources to increase private sector investment in sustainable development.

Current levels of development financing for sustainable development goals (SDGs) are not sufficient.

Watch this 3 minute video explaining the importance of blended finance:

Blended Finance Graphic

The 5 Steps to Designing a Blended Finance Project

The Organization for Economic Cooperation and Development (OECD) outlined 5 principles to designing and implementing effective and transparent blended finance programs

Anchor Blended Finance Use to the Development Rationale

All development finance interventions, including blended finance activities, are based on the mandate of development finance providers to support developing countries in achieving social, economic, and environmentally sustainable development

Does the project maximize development outcomes?
Does the project articulate blended finance objectives?
Does the project commit to high quality standards?

Increase the Mobilisation of Commerical Finance

Tailor Blended Finance to Local Context

All development finance interventions, including blended finance activities, are based on the mandate of development finance providers to support developing countries in achieving social, economic, and environmentally sustainable development

Does the project support local development initiatives?
Does the project support local government development?
Does the project support promotion of sound enable environment?

Focus on Effective Partnering to Scale Blended Finance

All development finance interventions, including blended finance activities, are based on the mandate of development finance providers to support developing countries in achieving social, economic, and environmentally sustainable development

Does the project support local development initiatives?
Does the project support local government development?
Does the project support promotion of sound enable environment?

Focus on Effective Partnering to Scale Blended Finance

All development finance interventions, including blended finance activities, are based on the mandate of development finance providers to support developing countries in achieving social, economic, and environmentally sustainable development

Agree on performance and result metrics from the start
Track financial flows, commerical performance, and development results
Dedicate appropriate resources for monitoring and evaluation
Does the project support promotion of sound enable environment?

Click the SDG image to explore blended finance examples for each of the 17 goals.

The content of this publication has not been approved by the United Nations and does not reflect the views of the United Nations or its officials or Member States.