OECD DAC Blended Finance Principles

The OECD DAC Blended Finance Principles offer a clear framework to guide donors in effectively using blended finance to unlock commercial capital for the SDGs. 

These principles include a five-point checklist designed to uphold quality standards and ensure development impact. Rooted in a development rationale supported by DAC members, the principles help donors design, assess, or refine their blending programs. They emphasize key aspects such as engaging local capital markets, applying concessionality only when necessary, and ensuring robust monitoring and evaluation systems. 

Whether starting a new initiative or strengthening an existing one, donors are encouraged to use the principles to critically examine their approach and ensure that blended finance is aligned with global development goals and delivers measurable results in a transparent, efficient, and context-appropriate manner.