The G20 Bali Global Blended Finance Alliance (GBFA) is envisioned as an international organisation to work with partners to strengthen the blended finance ecosystem and fill market gaps. The G20 Bali GBFA draws on Indonesia’s experience as an emerging economy and successful use of blended finance working with leading experts and delivery partners in development projects. The strategy rests on the following four key approaches:
Scale blended finance in developing countries by accelerating the use of bilateral assistance/donors/MDBs to design policies based on the "G20 Blended Finance Principles" and an appropriate transition ecosystem, in order to mobilize funds from the private sector.
Building solidarity and strengthening outcomes, as well as fostering a more balanced decision making between developed and developing countries, including building a hub of financial knowledge, share best practices, pioneer innovation for system shifts to support better outcomes for the SDGs. Reduce the complexity and transaction costs to scale up blended finance, especially transition finance in developing countries.
Facilitate engagement and collaboration across government, development institutions, civil societies with business and investor to foster trust and good practice to accelerate project pipeline development, reducing risk perception, simplify transactions, supporting transparency and optimizing the use of catalytic concessionary capital, and pilot and scale fit-for-purpose financial solutions that are capital efficient.
Work with governments and national/regional DFIs to standardize blended finance structures, reporting and data availability to build transparency and reduce the perception of risk, enhance impact-related evaluation, and accelerate access to catalytic concessionary capital (results-based financing).
The 3 Key Pillars of the G20 Bali GBFA
to strengthen developing countries’ capacity to mobilize finance at scale through South-South cooperation.
Design a country-led platform around clear focus areas (e.g. energy transition; nature-based solutions for forestry and oceans, sustainable food production, and sustainability of water)
Find opportunities for South-South Collaboration
Facilitate creation of pipeline of bankable project
Project/deal matchmaking
Standardized tools, guidelines, templates e.g. tools and templates for pipeline, database
Knowledge products e.g. documentation and sharing of case studies, flagship annual report
Training, exchange, secondment programs
Facilitate policy development on blended finance under South South cooperation project
Project/deal matchmaking
Peer to peer learning network
MDBs/FI and donor engagement, e.g. joint advocacy
Private sector Engagements, e.g. investor events
Creation of convening platforms for all parties to come together working with many partners
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