The OECD DAC Blended Finance Guidance

Achieving the 2030 Agenda and Paris Agreement goals requires scaling up and aligning all financial resources—public and private—with sustainable development objectives. Blended finance is a vital mechanism to unlock and direct private capital toward sustainable development in developing countries, especially where traditional financing falls short. 

However, as a relatively new tool in development cooperation, its implementation varies widely. To address this, the OECD Development Assistance Committee (DAC) created the Blended Finance Guidance, approved in September 2020, as a practical policy tool for a range of development finance providers—donor governments, multilateral institutions, philanthropies, and others. 

The Guidance supports the application of the OECD DAC Blended Finance Principles and offers actionable policy recommendations, best practice examples, practical checklists, and relevant references. Developed through extensive global consultation with experts, practitioners, and researchers, the Guidance seeks to improve both the scale and quality of blended finance by helping stakeholders design more effective and impactful programs that mobilize private investment for sustainable development in developing countries.