G20 Bali Global Blended Finance Alliance Sustainable Finance for Our Shared Future: Empowering the Global South

Delivering On A Global Mandate

Blended finance is a pivotal link in the climate transition because it can be the switch that incentivizes the private sector to move forward. Blended finance strategically combines public, philanthropic, and private capital to bridge the significant financing gap needed to achieve sustainability in developing countries.

For emerging and developing economies, including the Archipelagic States, the need for sustainable investment is immense— spanning climate mitigation, energy transition, infrastructure, health, and food systems. Yet, public budgets alone cannot meet this demand. A supportive policy ecosystem is needed to encourage private capital flows at scale. The need for a global institution to address the $4.2 trillion annual funding gap toward meeting the financing needs was recognized by the G20 in their 2022 Bali Leader’s Communique. The new international organization, the G20 Bali Global Blended Finance Alliance (GBFA) seeks to fill the funding gap and to implement the G20 Blended Finance Principles. It looks to deploy shared learning, policy innovation, and partnerships, to help developing countries implement practical, country-led solutions for climate and development financing. Within the framework of climate actions, the G20 Bali GBFA is committed to facilitate collaboration of climate -related projects on nature, such as water management, rehabilitation and conservation, sustainable agriculture, and blue carbon initiatives. By utilizing blended finance mechanisms that combine public, private, and philanthropic funding, the G20 Bali GBFA promotes to reduce investment risks in large-scale projects while ensuring local stakeholders acquire the skills needed for long-term sustainability. This dual approach strengthens institutional capacity and delivers tangible climate action.

The facilitation of country-led platforms

Too few developing countries have platforms that integrate development and climate strategies to guide public-private investment. The G20 Bali GBFA helps countries create these platforms, enabling them to identify priority investments, shape coherent policies, and map financing needs and gaps.

Institutional

capacity building for climate

No single actor can drive systemic change alone. Governments, civil society, private investors, and philanthropic actors must collaborate. The G20 Bali GBFA invests in capacity-building to help institutions design, manage, and deliver complex finance solutions in line with climate and development targets.

The formation of partnerships.

The G20 Bali GBFA will scale and replicate proven blended finance tools, reduce transaction costs, and unlock finance for net-zero transitions, nature-positive solutions, and blue economy initiatives. It will also foster knowledge-sharing among governments, private partners, and philanthropic institutions to accelerate learning and innovation.

Anchored In Ownership And Driven By Partnership

The G20 Bali GBFA places South-South cooperation at the heart of its mission recognizing the unique challenges faced by developing countries and Archipelagic Island States. By fostering collaboration among developing countries, it aims to co-create and scale locally owned, culturally aligned solutions to global problems.

In 2024, Kenya and Fiji formalized their commitment by signing the G20 Bali GBFA Articles of Agreement with host country Indonesia.

Country members and knowledge partnerships are key to the G20 Bali Global Blended Finance Alliance initiatives to scale blended finance transactions for climate action and the SDGs at country-level. Knowledge partners —including the United In Diversity Tri Hita Karana Forum, OECD, UNDP, AVPN, and Tony Blair Institute — play a crucial role in the G20 Bali GBFA ecosystem by providing outreach, expertise, research, and technical assistance.

From Vision To Transformative Impact

The G20 Bali GBFA is poised to become a transformative global force—delivering scalable, replicable models of blended finance while deepening multilateral cooperation. As global economic uncertainty and geopolitical tensions rise, the new organization embodies a hopeful path forward: one where countries unite around shared goals as well as practical and innovative solutions.

Join the Movement.

The G20 Bali Global Blended Finance Alliance invites governments, development institutions, investors, and civil society organizations to join its mission to co-create a sustainable and inclusive future. ■

To explore opportunities for engagement with the G20 Bali Global Blended Finance Alliance, please contact info@g20baligbfa.org