World leaders have made ambitious commitments to achieve the SDGs. Yet, securing enough resources remains a major challenge, with developing countries facing a gap estimated between US$2.5–3 trillion per year. Financing is theoretically available, given the size, scale and level of sophistication of the global financial system—with gross world product and global gross financial assets estimated at over US$85 trillion and US$ 200 trillion respectively.
While the world has never been as rich as it is today, financial flows and wealth, mostly private, do not (or cannot) reach the geographies and people that need them the most. That is the reason why the United Nations set up the ‘Sustainable Development Goals Fund”. The UN Joint SDG Fund supports countries as they accelerate their progress toward the Sustainable Development Goals (SDGs). It follows the UN Secretary-General’s guidance on financing the SDG along 3 tracks, including:
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Aligning global economic policies and financial systems with the 2030 Agenda.
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Enhancing sustainable financing strategies and investments at regional and country levels.
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Seizing the potential of financial innovations, new technologies and digitalisation to provide equitable access to finance.
The process for submitting proposals is led by UN Resident Coordinators (RCs). The 1st call for proposals for the SDG Fund (see Terms of Reference) closed on 15 March 2020 and focused on 2 components (see below).
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Reinforce the SDG financing architecture (Component 1): The Fund will support UN Country Teams in the development of financing strategies and enabling frameworks for SDG investment. This work will include the strengthening of the capacities of the national and sub-national SDG financing architecture, piloting of integrated national financing frameworks, establishment of partnerships through convening networks and consortia comprised of actors from the public and private sector and the production of SDG-aligned financing strategies.
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Catalyse strategic investments (Component 2): The Fund will support UN Country Teams in investing in key initiatives that leverage public and private financing in order to advance the SDGs. These initiatives will provide a demonstration of concept and will be scalable both in country and elsewhere.
UNEP’s Climate Finance Unit (CFU) has worked with several other UN organisations and programmes in drafting proposals under this 1st call and envisions contributing our expertise to help member states scale up public and private investment to advance on the SDGs, particularly – from our side – in the area of sustainable, deforestation-free commodity production, land restoration and other nature-based solutions.
About the author
Ivo Mulder, Head, Climate Finance Unit, UNEP
