Bridging the financing gap for SDGs

Channelling finance for people and the planet is critical. To achieve the 2030 SDGs, over 4 trillion dollars are needed to close the global financing gap. The finance needed is only 1% of the global wealth. However, it is not directed to the most needed areas of sustainable development.

With the UNDP moonshot to mobilize and leverage capital of 1 trillion USD towards the SDGs, we work on building a more sustainable finance architecture with public and private sector partners. UNDP possesses a unique position in shaping global economic governance and initiating systemic changes to make the finance work for economic development, social impacts and environmental sustainability.
 

UNDP Regional Bureaus work with UNDP Sustainable Finance Hub across 4+1 service offers: 

1. Public Finance for the SDGs
2. Unblocking Private Capital and Aligning Business Operations for the SDGs
3. SDG Impact Management and Finance Tracking
4. Integrated National Financing Frameworks (INFFs) and portfolios
5. SDG Finance Academy

At the request of countries, we at UNDP Europe and Central Asia:

• Ensure timely and quality support to meet country-level development demand
• Tailor global UNDP service with national and regional context
• Assist governments to learn from regional and global best practices
• Build and strengthen partnership on SDG Financing

In the region, we work with country offices to:

• Monitor regional trends and progress
• Support learning and knowledge exchange on sustainable finance practices
• Facilitate and introduce global initiatives to country contexts
• Integrate Impact Management methodologies into project management

Regional trends and highlights

• 10+ countries in the region are involved in INFFs  through the Joint SDG Fund, developing development finance assessment and financing strategies based on national development priorities and SDGs.
• Budget tagging in Ukraine allows for the tracking and reporting of budget allocations and expenditures related to each SDG, facilitating transparency and accountability in achieving these goals.
• In July 2021, Uzbekistan made a significant milestone by becoming the second globally to issue a Sovereign SDG Bond. This innovative financial instrument serves as a means to attract global investment resources and allocate them towards vital public projects aligned with SDGs.
• Kyrgyzstan is introducing a requirement to assess the effectiveness of tax incentives within its new Tax Code, aligning them with national development priorities and SDGs. Supported by the INFF, it aims to optimize tax incentives, attract private investment, and generate additional revenue for financing key development strategies, fostering economic growth, and reducing poverty in the country.
• 3 countries are engaged in Tax for SDGs initiative and 5 engaged in Tax Inspectors Without Borders
• SDG Investor Maps of 6 countries in the region were developed or being finalized, including Türkiye, Armenia, and Serbia.
• Uzbekistan designed an innovative and blended financing instrument (Green Lady Fund) with multiple other countries interested in exploring new financing tools to attract private sector financing.
• SDG Finance Academy provided learning opportunities and knowledge exchange.
• In close collaboration with the Aid for Trade project, public and private sector partners in three focus countries in Central Asia received Impact Measurement or Management Training in September 2023.