Day two of the learning session focused on the development impact of blended finance. The participants became familiar with the design and best practices of the blended finance, transactions and implementation models. Overall, it was confirmed once more during the session, that there is a broad international interest for the blended finance. For instance, bilateral donors and multilateral banks are looking into deploying investments that mix public finances and private investments.
Being an emerging tool, blended finance should be used with caution. Scaling up blended finance should be based on good understanding of its risks and the possible consequences for development co-operation providers. Mixing public and private finance is one way to attract more private investment in important public good dimensions in developing countries. There is clear need for more research and practice examples of the ways blended finance can contribute to the implementation of the ambitious goals set by the Agenda 2030 and the Paris Agreement.