Overview

There is an annual financing gap to achieving the SDGs of around US$4 trillion each year. Given that the SDGs seek to overcome existing global challenges through economic transformation, inequality reduction and environmental protection, the failure to close the financing gap threatens the livelihoods of billions on the planet. The challenge is further compounded by factors such as donor over-reliance, inability to marshal collective mobilization of private sector capital, lack of transparency, and misalignment of incentives. Digital finance underpins catalytic innovations that can address existing barriers or unlock new pathways for the financing of national development needs. Identifying and leveraging new forms of finance, in addition to enhancing existing SDG financing channels, will be crucial. Closing the financing gap will also involve a coordinated effort from developed and developing nations. This will also involve overcoming the challenges posed by the existing fragmented and complex international climate financing system. A recent survey to which 37 UNDP country offices responded show that digital finance is a priority in many countries yet only 40% have a digital finance strategy and the understanding of the nexus of digital finance and sustainability is moderate. The Sustainable Finance workstream within the Global Centre, in close collaboration with the UNDP Sustainable Finance Hub provides actionable strategic guidance to UNDP around the world, shaping and brokering partnerships with innovators, building skills and knowledge, and highlighting the importance of sustainable finance for sustainable development.