How does the G20 Bali GBFA differentiate from other existing blended finance mechanisms?

Developing countries are at widely differing stages of engagement with the private sector through the use of blended finance, including many that are not familiar with the concept of blended finance and others concerned about the risks of engaging with the private sector due to transaction costs and unfamiliar counter-parties. Within the Global South, there is often a sharing gap of knowledge to replicate blended finance structures. The G20 Bali GBFA seeks to solve that gap by providing blended finance expertise to link transitioning economic sectors with fit for purpose capital solutions. The G20 Bali GBFA will work collaboratively with MDBs, climate funds and philanthropic partners as well as other impact players and experts to achieve the desired results.

Will the G20 Bali GBFA only focus on blended finance mechanisms in its mode of work, or will it include wider scope of sustainable financing mechanisms?

The SDGs funding gap addresses different sectors which require significant financing, and thus the G20 Bali GBFA will seek to mobilize sustainable financing and innovative solutions for the SDG targets, including the use of blended finance to eliminate barriers to private investment and de-risk high impact projects by recommending policy reforms and proven best practices

Will the G20 Bali GBFA's “SDG Marketplace” entail the use of blended finance mechanisms?

It will specifically seek to showcase best practices to reduce carbon emissions to hold the global average temperature well below 2.0 degrees Celsius to comply with the Paris Accord.

Will GBFA consider projects from other countries? If yes, what is the selection method?

The G20 Bali GBFA will consider projects from other countries, and the Member countries will need to agree on the framework for the selection process which management will implement. The initial focus is on Indonesia where pilots can be tested and standardized to then be rolled out faster in other countries. Some archipelago island states have asked to lean about blended finance solutions linked to oceans like the Blue Halo S initiative. The G20 Bali GBFA will have a project platform where member countries can feature high impact projects seeking to achieve the SDGs.

How does G20 Bali GBFA plan to incorporate impact measurement and management of projects?

The G20 Bali GBFA will work closely with member countries and THK partners who manage projects to develop standardized data, metrics and measures for SDG projects using technology from key stakeholders and policy partners it will assemble in this important space. For example, it is working with the OECD on blended finance principles, with the Rockefeller Foundation on Blended Billion for Planetary Health grants, and with Harvard University on scope 3 and supply chain measures with accuracy for enterprise.

What is the governance structure of the G20 Bali GBFA?

The highest governing body of the G20 Bali GBFA is the Assembly (akin to a board of governors), a non-resident body comprised of the Contributing Members of GBFA and include two representatives of Participating Members. The Contributing Members are members that have signed the Articles of Agreement and committed to provide a financial contribution in the amount up to $US10 million payable over five years. The Participating Members are members that have signed the Articles of Agreement and are not Contributing Members, however, they can contribute in-kind and receive certain benefits, including capacity building training, facilitation of the preparation of the Country Platform, among other activities. 

The term Members refers to countries that are members of the G20 Bali GBFA and any member state of the United Nations that subscribes to the G20 Bali GBFA Articles of Agreement may be a Member.  

The Council of the G20 Bali GBFA, akin to a board of directors, serves as the executive organ of the organization, and under the guidance of the Assembly shall be responsible for directing the activities of the G20 Bali GBFA.  The Council exercises the powers delegated to them by the Assembly, except certain powers reserved solely for the Assembly.  It is a non-resident body with developing country experience in blended finance comprising the representatives from constituencies of the Contributing Members, the Participating Members, the representative of the host country, and the Secretary General.  

The Advisory Council is a consultative and advisory organ of the G20 Bali GBFA comprised of leading blended finance experts appointed by the Council. It’s two principal roles are to serve as a forum for private sector representatives to participate in deepening public–private cooperation in climate financing and the achievement of the SDGs, and to provide advise the Council on recommended strategies and activities of the GBFA, including with regard to synergies and linkages between the G20 Bali GBFA and other entities. 

The Secretariat, under the guidance of the Assembly and the Council, is the chief operational organ of the G20 Bali GBFA, led by a Secretary General who will be Chief Executive Officer of the organization. The Secretary General shall be nominated by the Council and appointed by the Assembly. 

The G20 Bali GBFA will also include Knowledge Partners which are international, nongovernmental and philanthropic organizations and foundations that have deep expertise, diverse experience and complementary skills with similar objectives of the G20 Bali GBFA and interested in furthering its purposes by advising, supporting and facilitating the activities of the G20 Bali GBFA.  

What is the role of Indonesia in the G20 Bali GBFA?

The GBFA is an initiative of the President of the Republic of Indonesia during the G20 Bali Heads of States meeting and led by the Coordinating Ministry of Maritime Affairs and Investments and the Coordinating Ministry of Economic Affairs, with the Ministry of Finance and the Indonesia Deposit Insurance Corporation (LPS) as co-chairs with leading global and local partners. 

How will the non-government entities be involved in the G20 Bali GBFA?

The GBFA will include Knowledge Partners (as defined above) which will serve as

What are the expectations of a member of the GBFA?

GBFA Members can support the organization and the projects featured on its platform to which the GBFA may be providing technical support, by participating in those projects financially, including through their respective development finance institutions.  Should a member wish to prioritize focus on one or more specific 17 SDGs, it could consider establishing and funding an affiliate office with that purpose while operating under the umbrella of the G20 Bali GBFA.

What is the role of the OECD in the GBFA?

The OECD has been a strategic partner in the development of the G20 Bali GBFA as well as to the THK Forum in policy lab, in the THK Roadmap on Blended Finance and the OECD DAC Principles. They will play a key role on the policy front and have expressed a keen interest in the G20 Bali GBFA’s future activities.

What is the purpose of the members’ capital contributions?

The one-time capital contribution of Contributing Members will form the capital base of the G20 Bali GBFA which will be used to meet its administrative expenses.  The functions of the G20 Bali GBFA at its launch do not include a financing function. The G20 Bali GBFA will bring expertise and network to intermediate blended financing opportunities, especially in emerging markets, low-income countries and the small island developing states. The goal is to leverage public and philanthropic funds by using those funds to incentivize private investment in sustainable projects.