Global
Financing Solutions for Sustainable Development

SDG Financing Solutions

 

The financing needed to achieve the Sustainable Development Goals (SDGs) will greatly surpass all current development finance flows, but can be also raised from the large amounts of (mostly private) investable resources available globally. Domestic public resources, even in low income countries, can be increased and spending optimized. Financing solutions provide strategies and means to effectively unlock and direct these sources of finance toward realising the SDGs.

Biodiversity offsets

Measurable conservation outcomes resulting from actions that compensate for significant residual adverse biodiversity impacts arising from development projects.

Bioprospecting

Systematic search for biochemical and genetic information in nature in order to develop commercially-valuable products and applications.

Carbon markets

Carbon markets aim to reduce greenhouse gas emissions cost-effectively by setting limits on emissions and enabling the trading of emission units.

Climate credit mechanisms

Market mechanisms that enable entities, for which the cost of reducing emissions is high, to pay low-cost emitters for carbon credits that they can use to meet emission-reduction obligations.

Concessions (Protected Areas)

Concessions allow people to use land or property in a protected area or natural site for a specified purpose, usually in exchange for a fee.

Crowdfunding

Approach for projects, organizations, entrepreneurs, and startups to raise money for their causes from multiple individual donors or investors.

Debt for nature swaps

Agreement that reduces a developing country’s debt stock or service in exchange for a commitment to protect nature.

Disaster risk insurance

Insurance schemes covering—against a premium—the costs incurred by the insured entity from extreme weather and natural disasters.

Ecological fiscal transfers

Integrating ecological services means making conservation indices (e.g. size of protected areas) part of the fiscal allocation formula to reward investments in conservation.

Enterprise challenge funds

Funding instrument that distributes grants (or concessional finance) to profit-seeking projects on a competitive basis.

Entrance and activity fees

Tourists pay fees for access to a protected area. The revenues can contribute to conservation through retention by protected areas, revenue sharing agreements, and public transfers.

Environmental trust funds

Legal entity and investment vehicle to help mobilizing, blending, and overseeing the collection and allocation of financial resources for environmental purposes.

Green bonds

Bonds where proceeds are invested exclusively in projects that generate climate or other environmental benefits.

Impact investment

Investments made with the intention to generate a measurable social and environmental impact alongside a financial return.

Lotteries

Governments and civil society use lotteries to raise funds for benevolent purposes such as education, health, and nature conservation.

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