The role of blended finance in the 2030 Agenda: setting out an analytical approach


The objective of this discussion paper is to set out the approach we plan to take for analysing blended finance and its role in financing the 2030 Agenda, seeking feedback from all interested stakeholders.

The potential role of blended finance – the use of public-sector funds to mobilise private investments for the financing of development projects – has gained increasing interest and recognition from international policy dialogues and recent UN agreements. This includes the 2030 Agenda for Sustainable Development. Donors are already pledging to scale up their efforts to use aid in blended finance partnerships with private actors.

We therefore need to improve the evidence base on blended finance, which is currently very limited, to ensure it can reach its full potential in financing the 2030 Agenda and that its impacts are understood, transparent and accountable.

This paper sets out 10 key questions we intend to answer on blended finance. These include how much finance is there, who gives it, where it goes and who benefits. It also provides information on the actors and financing flows, as well as on data and evidence sources we plan to use to answer the questions throughout our research for this project.

We will use feedback to shape our future analysis on blended finance. Our first data report on blended finance will be launched online later in 2016.

Download the discussion paper

  • We welcome feedback on all aspects of the analytical approach, including your suggestions on the priority questions that need to be answered.
  • Feedback if possible by July 31 2016.
  • We would also welcome hearing at any time from finance providers or other organisations who can contribute data and evidence, or who are interested in helping us develop case studies of blended finance projects.

Read more about our blended finance project
Read our second discussion paper on blended finance

Contacts

To keep up to date with this project and receive updates on our work, please get in touch.

Homepage image credit: Simon Davis/DFID

This discussion paper was updated on 21 July 2016