#FinancingSDG

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Develop sustainable finance initiatives.

The global wealth of US$430 trillion is not going where it is most needed under the current financial system. The current small, separate sustainable finance initiatives will not deliver the change at scale needed.

The answer: an architecture for sustainable finance based on the SDGs

The world needs an economic governance architecture deliberately designed to support governments, development agencies, civil society and the private sector to make decisions that prioritize investment in the SDGs.

UNDP’s strengths: UNDP is uniquely positioned to realize a sustainable finance architecture by working with multiple partners through:

Mobilizing financial expertise to sustainable development

Bringing sustainable development expertise to the private sector

Providing access to private financial investors 

Designing instruments for the delivery of vertical funds and innovative instruments

Building a sustainable finance architecture at the country level

Facilitating South-South exchanges and horizontal knowledge-sharing on sustainable finance practices

UNDP ACCELERATES FINANCE FOR THE SDGS AND COVID-19 RECOVERY.

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The answer lies in an sustainable finance architecture based on the SDGs.

The global wealth is estimated at around US$430 trillion but under the current financial system finance is not going where it is most needed, and often it goes to the “wrong things”. Current decision-making over both public and private investments are negatively impacting the environment beyond repair and concomitantly exacerbating poverty and inequality, contributing to social tensions.

The world needs a financial and economic governance architecture deliberately designed to support governments, development agencies, civil society and private sector come together to make decisions that prioritize investment in the SDGs.

UNDP works with multiple partners to realize a sustainable finance architecture and calls on its partners to join UNDP in its $1 trillion ‘Moonshot’ target to help mobilise game-changing public and private sector resources towards the SDGs.

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Focus on the alignment of public finance with the SDGs.

Official Development Assistance (ODA) while critical is not enough to address the development financing needs. UNDP’s public finance offer focuses on the alignment of public finance with the SDGs through

raising domestic revenues aligned with the achievement of SDGs 

raising public finances –SDG aligned bond issuances 

sovereign risk financing instruments to protect assets and enable investment

SDG aligned fiscal planning and expenditure management

LEARN MORE ABOUT PUBLIC FINANCE.

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Promote the alignment and mobilization of private capital towards the SDGs.

The Sustainable Development Gaoals (SDGs) provide the blueprint framework to make investment decisions that are driven by impact not by profit alone. UNDP’s service offer contributes  to  promoting  the alignment and mobilization of private capital towards the SDGs through

originating SDG investment project pipelines  

accessing public and private capital for SDG  investment

aligning business operations with the SDGs

supporting and enabling policy environment for SDG investment

UNLOCKING PRIVATE CAPITAL AND ALIGNING BUSINESS OPERATIONS FOR THE SDGS.

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Ehance investment with positive impact on people and the planet.

World needs to move to a system where all capital is deployed responsibly and sustainably. UNDP’s service offer aims shift the current systems of decision-making towards investment with positive impact on people and the planet.

Policy frameworks and accountability for SDG IMM

Public sector systems for tracking public and private finance towards SDG impacts

SDG IMM for private sector entities

Impact assurance and standards for public and private actors

SDG IMPACT MANAGEMENT AND FINANCE TRACKING.

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Mobilize and align financing for sustainable development and the SDGs.

INTEGRATED NATIONAL FINANCING FRAMEWORKS (INFFS) AND PORTFOLIOS;

INFFs in more than 80 countries bring together a wide range of existing public and private actors to mobilize and align financing for sustainable development and the SDGs at the country level. UNDP leads the technical assistance through

designing integrated national financing frameworks

delivering risk-informed financing strategies

building Country Office SDG finance portfolios

accessing knowledge and expertise through the INFF Facility

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Integrated National Financing Frameworks for the Sustainable Development Goals.

A Clearer picture of the public and private financing landscape. But limited inclusion of financing in existing national development plans. However a few countries are starting to take steps in this direction.

Functional relations in an INFF.

Functional relations in an INFF

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Improve the alignment of public spending and private investment with national development priorities

About the UNDP Development Finance Assessments.

WHAT IS A DFA?

A tool to help government finance the SDGs; A process of dialogue Informed by analysis; A assessment That produces a roadmap of finance reforms.

Strengthening the alignment of State planning and finance policies

Improving the alignment of public spending and private investment with national development priorities

Opportunities to unlock new sources of financing

ANALYSIS FEATURES

Aggregation of tools/assessments for evidence based dialogue

Holistic: public and private finance & across government

Links finance to SDG planning, ongoing reforms and results - forward looking

Focuses on both effective management and mobilisation of financing

POTENTIAL OUTCOMES

FINANCING LANDSCAPE: Clearer picture of the public and private financing landscape.

SHARED UNDERSTANDING: financing priorities and roles of different actors,among core public and private constituencies.