Evaluating Blended Finance Instruments and Mechanisms: Approaches and Methods

This paper provides a comprehensive overview of approaches and methods for evaluating various blended finance instruments and mechanisms. It delves into the complexities of assessing financial and development additionality, impact, and results across different structures like equity, debt, guarantees, and impact bonds. The document aims to enhance a shared understanding among practitioners regarding methodological choices, opportunities, and challenges in evaluating blended finance interventions. It offers practical guidance to strengthen evaluation practices, ultimately supporting more effective deployment of blended finance to mobilise additional investment for achieving ambitious development goals like the 2030 Agenda and Paris Agreement.