In 2021, the G20 endorsed the Framework for Voluntary Support to Integrated National Financing Frameworks (INFFs). One year later, G20 members are playing a leading role in supporting INFF development worldwide.

This report takes stock of INFF progress since the G20 endorsement. It draws on data from the 2022 State of INFFs survey and includes information from UNDP-supported SDG Investor Map, country case studies and consultations with the G20 Development Working Group.

More than 80 countries are using INFFs to implement robust, holistic strategies for financing sustainable development. Thirty-nine countries are using INFFs to develop a financing strategy for their national development plan for the first time; 25 countries are improving existing financing strategies.

Through these financing strategies, governments are taking forward more than 250 specific reforms to public and private financing policies, regulations and instruments. This pipeline of reforms represents a timely opportunity to accelerate progress toward the 2030 Agenda.

Many of these policy reforms focus on private finance. They cut across many policy issues designed to mobilise and align private capital with national sustainable development priorities and the SDGs.

To identify areas where private capital will be catalytic for SDGs advancement, more than 40 countries are systematically mapping and promoting SDG-aligned investment opportunity areas through UNDP-support SDG Investor Map. Over 450 opportunity areas have been identified; one-third will require blended finance to unlock private sector investment, especially for last-mile populations. The investment opportunity areas are freely available on the SDG Investor Platform.

Blended finance offers exciting potential for channelling private finance to where it’s needed most. Under the 2021 Italian Presidency, the G20 reaffirmed that “development actors should use their capabilities to enhance mobilization of the private sector, including by using risk sharing strategies, blended finance approaches and building a pipeline of suitable projects.”

Building on these past achievements, the Indonesian Presidency put forward the G20 Principles to Scale Up Blended Finance. This work builds on the G20 Financing for Sustainable Development Framework endorsed in 2020 under the Saudi Presidency and the G20 Framework for Voluntary Support to INFFs endorsed under the Italian Presidency.

The stocktake report informed the blended finance principles and builds on these past efforts.  Within an increasingly challenging context, countries are using INFFs to frame ambitious, country-led agendas to build a more sustainable finance architecture and accelerate progress toward the SDGs. Responding to country demands for support in translating opportunity areas into actual investments, deploying blended finance at scale and implementing a range of other public and private financing reforms will be crucial for realising their potential.