The transition to a green economy poses great challenges which cannot be met solely through grant resources and traditional forms of development assistance. In certain cases, blending can attract additional public and private financing for climate change action.
Since it was first introduced at the beginning of the Multiannual Financial Framework 2007-2013, the blending has gradually evolved into an important tool of EU external cooperation, complementing other implementation modalities. EU regional blending facilities have been established in all regions of EU external cooperation.
Over the years 2007-2013, €1.6 billion EU grants financed 200 blended projects. The EU grant contributions have leveraged approximately €16 billion of loans by European finance institutions and regional development banks. By strategically combining EU grants with public and private financing, blending helps unlock investments with an estimated volume of €40 billion in EU partner countries.
60% of the EU grants allocated to blending projects supported energy and transport infrastructure initiatives; 30% was invested in social infrastructure related to access to clean water, waste treatment, housing, health, urban as well as the environment; and 10% of the grant funds supported the local private sector, notably MSMEs, in strengthening local production capacity and fostering job creation.
Investment needs in EU partner countries are substantial. Government and donor funds are far from sufficient to cover these needs. Countries need to attract additional public and private finance to drive economic growth as a basis for poverty reduction.
The Agenda for Change emphasises the support of inclusive growth and job creation as a key priority of EU external cooperation. In this context, blending is recognised as an important vehicle for leveraging additional resources and increasing the impact of EU aid.
Operational conclusions of the Financial and Administrative Framework Agreement working group meetingsWednesday, 6 January, 2016 FAFA working group - 9th meeting operational conclusions - April 2012 FAFA working group - 8th meeting operational conclusions - April 2011 FAFA working group - 7th meeting operational conclusions - April 2010 FAFA working group - 6th meeting operational conclusions - April 2009 FAFA working group - 5th meeting operational conclusions - April 2008 FAFA working group - 4th meeting operational conclusions - April 2007 FAFA working group - 3rd meeting operational conclusions - April 2006 FAFA working group - 2nd meeting operational conclusions - January 2005 FAFA working group - 1st meeting operational conclusions - February 2004 Joint Reference Group - 1st year of operation report FAFA working group - 10th meeting operational conclusions - October 2013 FAFA working group - 11th meeting operational conclusions - September 2015
The objective to the meeting is to present a state of play of on-going work conducted by the Bêkou Trust Fund, discuss with Member States the way forward for the coming months and the plans to organise a donors meeting in favour of the Central African Republic.