G20 Principles to Scale Up Blended Finance in Developing Countries, including Least Developed Countries (LDCs), and Small Island Developing States (SIDS) set out voluntary principles that reflect the common strategic direction and aspiration for scaling up blended finance implementation in developing countries, including LDCs and SIDS. The principles were agreed in 2022 during the Indonesian G20 Presidency.
The G20 Principles enrich the existing principles in the following areas:
(1) Provide blended finance policy and practitioner frameworks to enable developing countries including LDCs and SIDS to effectively attract, deploy and scale blended finance
(2) Provide additional insights and guidance to address implementation and capacity challenges, and bring blended finance to scale in developing countries including LDCs and SIDS.
These Principles provide a clear direction as to how blended finance can help finance sustainable development impact and build markets that attract commercial capital finance for national development strategies. It aims to help governments take an active role in scaling up blended finance transactions by building local capital markets, advancing local sustainable development priorities, and working closely together with private actors. For development cooperation providers, including multilateral development banks, the G20 Principles could catalyze support in developing countries, including LDCs and SIDS in terms of financing, capacity building, and policy support. The Principles highlight how blended finance can be aligned with country-led efforts including INFFs and SDG-aligned investment opportunity areas to support national sustainable development plans.