Climate change
ICC advances blended finance to raise capital for UN Sustainable Development Goals
The International Chamber of Commerce (ICC) joined key stakeholders at the 2020 Private Finance for Sustainable Development Conference to develop a shared framework for blended finance.
In recognition of the urgent funding needs of the 2030 UN Agenda, ICC is uniting with government, business, and civil society to develop a shared international framework for mobilising commercial capital to ensure that the UN Sustainable Development Goals (SDGs) are delivered.
The Tri Hita Karana (THK) Roadmap for Blended Finance, developed under the leadership of Indonesia and the Organisation for Economic Co-operation and Development (OECD), establishes a shared value system for stakeholders that builds on existing government mechanisms. In particular, the Roadmap specifies that blended finance should be used to mobilise commercial finance, for initiatives that can be commercially sustainable, and promote transparency. By establishing these common values, the Roadmap calls for the coordination of public instruments to foster investments toward the delivery of the UN SDGs.
As one of the co-leads on THK Roadmap for Blended Finance, ICC attended the 2020 Private Finance for Sustainable Development (PF4SD) Conference at the OECD to provide an update on the initiative and engage in discussions with other stakeholders. Together with the World Economic Forum and Ministry of Foreign Affairs of Denmark, ICC leads the Inclusive Markets Working Group, which explores developing local markets to facilitate sustainable investments.
Nikolaus Schultze, ICC’s Global Policy Director, joined partners at PF4SD to present the Inclusive Markets Working Group’s strategy for accelerating inclusive sustainable market development. During a panel presentation, Mr Schultze called for the need to share best practices that demonstrated the effectiveness of blended finance as a tool for inclusive development.
On the THK Roadmap, John W.H. Denton AO, ICC Secretary-General said:
“We need to consider fresh approaches and innovative solutions that will cut funding gaps, encourage private sector participation, and drive sustainable development for the long term. The THK Roadmap will provide a clear structure for bridging finance gaps and unlocking commercial finance for sustainable development.”
Following the PF4SD conference, the THK initiative will further look at how public finance instruments and innovative financing approaches can drive down the risk profile of inclusive investments to crowd-in private capital.
