UNDP SDG Finance Sector Hub accelerates financing for the SDGs
Financing the SDGs requires significant transformations within the global financial system, and within entities that own, manage or regulate financial flows and transactions. Fundamentally related to effective governance, financing the SDGs requires changes in the ways public and private actors interact with each other across the economic, social and environmental spheres.
UN Secretary-General’s Financing Strategy calls for
- Aligning global economic policies and financial systems with the 2030 Agenda
- Enhancing sustainable financing strategies and investments at regional and country levels
- Seizing the potential of financial innovations, new technologies and digitalization to provide equitable access to finance.
A Robust Approach to Financing the SDGs
UNDP, having a long track record of working in public finance and private sector development, and more recently in unlocking private capital for the SDGs, is uniquely positioned to advance financing for the SDGs. UNDP has seen a growing demand from partners to scale up its work around public finance, as well as private sector engagement, development, and finance issues. Corporations are increasingly seeking UNDP’s advisory services on strategic alignment with the SDGs.
In order to address these demands, UNDP established the SDG Finance Sector Hub (FSH) in April 2019, aggregating UNDP's existing work and expertise on financing the SDGs. The FSH offers a comprehensive package of methods and tools in support of the organization’s SDG Integration offer to enable governments, the private sector and international financial institutions to accelerate financing for the SDGs. From supporting national strategies that deepe public-private collaboration to developing global Standards for Private Equity funds, SDG Bonds and Enterprises, and investor maps for SDG-enabling investment at global, regional and national levels, the FSH brings the best of UNDP to accelerate progress of the SDGs.
The FSH currently offers four flagship initiatives, SDG Impact, Integrated National Frameworks (INNFs), Insurance and Risk Facility, and Digital Financing, to seize opportunities and address bottlenecks in scaling up finance for the SDGs.
Supporting its public and private partners, UNDP prioritizes response to COVID-19in ways that contribute to the overall objective of strengthening the finance systems necessary to achieve the SDGs. There can be no sustained COVID-19 recovery without building back better and adopting a more robust approach to financing the SDGs. Critical to a strengthened financing system will be ensuring complex risks are at the heart of financial decision making. Pandemic, climate and disaster risk, and economic shock will all need to be considered simultaneously as we consider financing a next generation of development plans. Equally important will be renewed trust in the institutions that make the financial decisions that determine our future.
UNDP’s Istanbul International Center for Private Sector in Development (IICPSD), established in 2011 in partnership with the Government of Turkey, an integral part of the SDG Finance Sector Hub,, supports the private sector and foundations to become transformative partners in development through research, advocacy for inclusive business, and facilitation of public-private dialogue and multi stakeholder-partnerships. The Center hosts four global initiatives: Business Call to Action, SDG Philanthropy Platform, Global Islamic Finance and Impact Investing Platform, Connecting Business Initiative.
GROUNDED IN PARTNERSHIPS
At the national level, the Finance Sector Hub supports UNDP Country Offices in aligning public as well as private finance with the SDGs.Working with UNDP Regional Bureaus, the Finance Sector Hub promotes knowledge and technical/technology exchanges between countries through South-South partnerships, and works to generate stronger regional integration on key financing-related topics.
The Finance Sector Hub collaborates with partners and networks that champion the systemic reforms and brings an SDG financing focus to the partnerships with International and Development Finance Institutions, business leaders, faith-based finance partners,and other private sector partners. UNDP builds consensus for improved governance of financing, and also strengthens the work on SDG financing with the UN system, including UNDESA, UNICEF, UN Women and UNCDF.