The term blended finance implies the mixing of both public and private funds through a common investment scheme or deal, with each party using their expertise in a complementary way.
Only a small percentage of the worldwide invested assets of banks, pension funds, insurers, foundations and endowments, and multinational corporations, are targeted at sectors and regions that advance sustainable development.
[11] The current challenge for the SDG era is how to channel more of these private resources to the sectors and countries that are central for the SDGs and broader development efforts.
These mechanisms can generally be classified as providing: The Sustainable Development Investment Partnership,[14] Convergence,[15] and Tri Hita Karana Forum[16] are three platforms that put blended finance into practice.
THK (Tri Hita Karana) began as a roadmap that was launched as a unified, international framework for mobilizing additional commercial capital towards the Sustainable Development Goals (SDGs), and was recently converted into a Blended Finance platform in 2021.