The financed gap in the implementation of the 2030 SDG Agenda in developed countries is estimated at USD 3.7 trillion by the OECD in 2020 and we are less than a decade away. There is a lot to be done in every dimension, be it policy, financed, or technology. Extensive efforts need to be undertaken to promote and advance initiatives that can help us achieve sustainable development goals. Private capital flow has been limited in financed those initiatives that can serve SDG 2030 Agenda.
Blended financed had shown promise as an effective tool to mobilize private financed for sustainable development. It addressed investment barriers and improves the risk-return profile of investments and helps attract commercial financed for the SDGs. Despite this, there has been insufficient progress in this direction in Developing Countries, Least Developed Countries (LDCs), and Small Island Developing States (SIDS).
Indonesia was developing and promoting “G20 Principles for Scaling up Private and Blended Finance in Developing Countries, Least Developed Countries (LDCs) and Small Island States (SIDS)” and would like to see it formally adopted by the G20. AVPN had been invited as an impact partner to the G20 Development Working Group (DWG) and is supporting Bappenas (Ministry of National Development Planning) in their efforts to developed “G20 Principles for Scaling-up Private and Blended Finance in Developing Countries, Least Developed Countries (LDCs) and Small Island Developing States (SIDS)”.
By participating in this consultation, attendees had an opportunity to contribute to an initiative which can potentially improve the practices and accelerate financing for sustainable development in emerging economies in the Asia Pacific region and around the world. This engagement explored opportunities and challenges in the blended finance landscape in the context of developing countries and least developed countries – both in policy and practice. The contribution will be aimed at the highest level in accelerating collective effort to reach SDG 2030 Agenda.