Resources

Learn more about the OECD's work on mobilising private finance for sustainable development

DAC Community of Practice on Private Finance for Sustainable Development

The Community of Practice on Private Finance for Sustainable Development (CoP-P4FSD) of the Development Assistance Committee (DAC) aims to advance the mobilisation of private finance for sustainable development.

Leveraging private finance for development

The strategic use of public resources to increase private investment in the sustainable development of low and middle-income countries is a priority for development co-operation providers. The OECD works with a range of partners to provide data and policy guidance and help create the right incentives.

OECD publications

See below a selection of OECD reports on the mobilisation of private finance for sustainable development.

Mobilised Private Finance for Sustainable Development - Data

Get an overview of the current data on mobilised private finance for sustainable development.

Unlocking Local Currency Financing in Emerging Markets and Developing Economies

Scaling local currency financing solutions in emerging markets and developing economies (EMDEs) requires addressing critical foreign exchange (FX) risks that limit the mobilisation of resources towards sustainable development outcomes. Challenges include structural constraints in multilateral development bank (MDB) and development finance institution (DFI) business models, underdeveloped local financial markets, and a lack of incentives and scalable instruments to engage institutional investors. This paper proposes policy options for expanding local currency financing flows, deepening domestic capital markets and mobilising local actors, with aims of fostering long-term economic resilience and stability in EMDEs.

Green, Social and Sustainability Bonds in Developing Countries

This report provides an overview of the engagement of development co-operation providers in support of the green, social and sustainability (GSS) bond market in developing countries. Based on extensive consultations with stakeholders as well as data provided by the Luxembourg stock exchange via the LGX DataHub, the report explores how donor institutions can collectively support GSS bond issuances in developing countries, while also strengthening impact and the quality of associated reporting and measurement.

Private Finance Mobilised by Official Development Finance Interventions

This report takes stock of progress made by development co-operation providers – both bilateral and multilateral – to mobilise private finance in support of sustainable development. It also highlights the contribution of mobilised private finance to narrowing the sustainable development goals (SDGs) and climate financing gaps. Finally, based on a survey conducted in 2022, the report presents qualitative insights on the providers’ portfolios, with a focus on their use of leveraging mechanisms, as well as on the main incentives and obstacles they encounter to scale up private finance for sustainable development and climate action.

OECD-UNDP Impact Standards for Financing Sustainable Development

A growing number of investors and corporates aim at coupling financial returns in developing countries with positive social, economic and environmental impacts. The OECD-UNDP Impact Standards for Financing Sustainable Development (IS-FSD) provide a framework for donors, development finance institutions and their private sector partners to make financial decisions and manage projects in ways that generate a positive impact on sustainable development, and improves the transparency of development results.

Biodiversity and Development Finance 2015-2021

This report provides an overview of the main trends of annual development finance with biodiversity-related objectives for the period 2015 to 2021, from a range of sources: bilateral Development Assistance Committee (DAC) members and non-DAC members, South-South and triangular co-operation providers, multilateral development banks (MDBs) and other multilateral institutions, private finance mobilised by development finance, and private philanthropy. The estimates are based on OECD statistical data, capturing both official development assistance (ODA) and non-concessional development finance.

Making Private Finance Work for the SDGs

Donors’ efforts to mobilise private finance through development finance institutions for the Sustainable Development Goals are off track. To deliver on their commitments, they must introduce systemic reforms that put sustainable development impact at the heart of all the activities of these institutions.

Sustainability-Linked Bonds

This report provides an overview of developments, challenges and opportunities in the new sustainability linked bond market, with a spotlight on public sector issuances in the wake of the first two sovereigns entering this space in 2022. Building on insights from extensive consultations with experts and stakeholders as well as data provided by the Luxembourg Stock Exchange via the LGX DataHub, the report highlights how tailored and well-timed donor engagement can facilitate market growth. It outlines six constraints that are preventing this market from reaching scale in developing countries and corresponding ways that donor support can help overcome these.

The Funding Models of Bilateral DFIs

Development Finance Institutions (DFIs) are critical in supporting sustainable development. To date, there has been a limited level of analysis focused on their funding models. This paper details 3 key messages.

Scaling Up Adaptation Finance in Developing Countries

This report analyses current trends of adaptation finance provided and mobilised by developed countries for developing countries. It explores potential action areas for international providers to scale up funding for climate change adaptation, including by unlocking the potential of the private sector. The analysis is anchored in the context of the USD 100 billion climate finance goal, initially set for 2020 and extended to 2025, while also providing insights to the broader and longer-term objective of supporting developing countries’ ability to adapt to the adverse impacts of climate change.

Blended Finance in Fragile Contexts

This paper analyses the OECD-DAC statistics on amounts mobilised from the private sector by official development finance interventions, from 2012 to 2017, against the multidimensional lens presented in the OECD 2018 States of Fragility Framework. The data shows a positive relationship between blending opportunities and economic, political and environmental security. The amounts of private finance mobilised increase, as a country’s economic, political and environmental fragility decreases.

The Role of Risk Transfer Mechanisms

Six years after the private sector has been called upon to help deliver the Sustainable Development Goals (SDGs), the financing gap remains tremendously high and mobilisation figures remain stubbornly low. Mobilising commercial investment at the portfolio level can be an effective way to match the needs of small scale borrowers in developing countries, and channel the large amounts of capital held by institutional investors towards their sustainable development. Risk transfer mechanisms (RTM) can be one effective way to intermediate between recipient and provider.

Scaling Up Blended Finance in Developing Countries

This paper was prepared at the request of the Indonesian G20 presidency. It presents an overview of the current state of blended finance in developing countries, with a focus on Least Developed Countries (LDCs) and Small Island Developing States (SIDS). It assesses opportunities and constraints on the way to mobilising the amounts needed to deliver on the 2030 Agenda and leave no one behind.

Green, social, sustainability and sustainability-linked bonds in developing countries

This paper analyses the rationale for, and challenges to, the scaling of green, social, sustainability and sustainability-linked (GSSS) bond issuances by public sector actors in developing countries. It serves as an introduction to donors, policymakers and potential GSSS bond issuers interested in the potential of these financial instruments to achieve the global development and climate agendas, and provides recommendations on how donors can support public sector actors to tap into this potential.

Blended Finance news and analysis available from our partner Environmental Finance

Blended Finance

Environmental Finance has launched a 'Blended finance' segment on its website, to help drive interest in this vital developmental theme.

Selected articles from Environmental Finance:

Camco raises $185m for African renewables blended finance vehicle

9 December 2024

Investors invited to apply for UK govt's £100m EM climate finance facility

12 December 2024

Debt-for-nature deals are 'growing very rapidly and are very scalable'

22 November 2024

Global Biodiversity Framework 'in jeopardy' after COP16 finance failure

4 November 2024