OVERVIEW

The G20 leaders unanimously ratified the G20 Bali Leaders’ Declaration acknowledging the need for the Global Blended Finance Alliance (GBFA) to serve as a global community of support to accelerate investment in climate action and sustainable development.

Extracts from the G20 Bali Leaders’ Declaration on Global Blended Finance Alliance

The G20 Principles to Scale Up Blended Finance in Developing Countries, including Least Developed Countries and Small Island Developing States

#3. Promote optimal operationalization and delivery of blended finance in developing countries, including LDCs and SIDS.

“……….. This includes the support of dedicated global institutions, including Multilateral Development Banks (MDBs) and the role played by philanthropies, to engage a wide set of actors and build a global community of support. We acknowledge the proposed initiative by the Government of Indonesia on the Global Blended Finance Alliance that could serve as a global community of support to accelerate investment in climate action and sustainable development.”

D. Financing for Development

Establishment of the Global Blended Finance Alliance (GBFA) (Indonesia, OECD)

The GBFA, to be launched on the margins of the G20 Summit, will seek to fill the SDG Funding Gap, through interested financing stakeholders and to implement the G20 Blended Finance Principles, developed in the G20 DWG, across relevant sectoral areas. Various sources of funding, including governmental and multilateral organisations, philanthropies and foundations, and the private sector are considered for the GBFA.

  14 November 2022: The G20 Bali Global Blended Finance Alliance by the Government of Indonesia with partners and friends including the Blended Finance Taskforce, the B-Team, GFANZ, UN SDSN, WRI, the Rockefeller Foundation and the United in Diversity Foundation. 

At the margin of the G20 Bali Summit in November 2022, the G20 Bali GBFA was launched at the Signing/Witness Joint Statement with Non-Government Partners Ceremony witnessed by Indonesian ministers, H.E. Luhut B. Pandjaitan, Coordinating Minister of Maritime Affairs and Investment, H.E. Siti Nurbaya Bakar, Minister of Environment and Forestry, H.E. Basuki Hadimuljono, Minister of Public Works and Public Housing, and H.E. Syahrul Yasin Limpo, Minister of Agriculture of Indonesia. The Ceremony was participated by international and national organisations including the Green Climate Fund, the OECD, Conservation International, Konservasi Indonesia, the Global Steering Group, Systemiq, Blended Finance Taskforce, the B-Team, GFANZ, UN SDSN, World Resources Institute, International Chamber of Commerce, United In Diversity Foundation, Pegasus Capital Advisors, ADM Capital, Capcade, PT SMI, BlackRock, Arnold & Porter, the Asian Development Bank, the Khemka Foundation and others.

Coordinating Minister Luhut said “We don’t have time to reinvent the wheel. This is why we are launching the Global Blended Finance Alliance which will build capacity across governments, the private sector and philanthropy to do better blending. The Alliance will be housed right here in Bali and we invite you all to partner with us. We don’t have time to lose if we are going to unlock trillions in investment each year for the planet. We need to do for the next generation, for our grandchildren.”

Initiated by the Government of Indonesia, the G20 Bali GBFA is envisioned as an international organisation to:

• work in partnership with many stakeholders and interested parties (governmental, philanthropic, and private investors) to stimulate the use of official and philanthropic finance to incentivise private investments for high-impact SDG-related business solutions.

support policy goals of the G20 Blended Finance Principles for standardization of data and framework to scale and replicate blended finance instruments to reduce the cost of investment in the Developing Countries, the Least Developed Countries and the Archipelagic Island States.

foster capacity building and sharing of best practices from other emerging markets to deepen South-South learning and collaboration. For example, the $3bn sustainable infrastructure platform called “SDG Indonesia One” under PT SMI is one great example which other countries can look to replicate.

The Tri Hita Karana Roadmap for Blended Finance, developed and launched in collaboration with the OECD and the Government of Indonesia around 2018 IMF/World Bank Annual Meetings, had provided the basis for informing the G20 Blended Finance Principle for developing countries.

G20 Bali and now India will continue to develop the G20 Principles for Blended Finance that will be continued with Brazil and South Africa as next G20 Presidencies.

G20 Bali Global Blended Finance Alliance Snapshot

If you would like to support the G20 Global Blended Finance Alliance, please reach out to

Illustrative Climate Actions and SDGs Initiatives