The Sustainable Development Investment Partnership (SDIP), a joint venture between the OECD and the World Economic Forum, is a collaborative initiative comprised of leading public, private and philanthropic institutions from around the world. Together, SDIP's members are committed to mobilizing $100 billion in blended finance for sustainable and climate-resilient infrastructure.
With a $1 trillion annual shortfall in infrastructure investment in developing countries - due to challenges ranging from credit and political risks to the lack of local capacity, debt tenors, currency volatility and liquidity - the financial resources necessary to support sustainable infrastructure projects has historically been inadequate and insufficient.
SDIP addresses the mismatch between investor needs and project funding requirements by facilitating the financing cascade of public and private funding to enable more projects to reach investment readiness. This is achieved by means of the now-widely accepted term Blended Finance: the strategic use of development finance and philanthropic funds to mobilize private capital flows to emerging and frontier markets, in turn increasing the speed with which the pipeline for bankable projects can be developed. SDIP coordinates the effective leveraging of public resources to help unlock commercial financing constraints, enabling more projects to reach financial close, and the engagement of new capital sources to support projects delivering significant development benefits.
By providing an open, neutral and collaborative multi-stakeholder platform connecting governments, development finance institutions and commercial capital, SDIP is helping to facilitate transactions. When projects receive the funding and risk structuring necessary to become bankable, the financing gap required to achieve long term development is reduced, accelerating progress towards achieving the Sustainable Development Goals.