Global
Financing Solutions for Sustainable Development

New: Financing the 2030 Agenda - An Introductory Guidebook!

An Introductory Guidebook for UNDP Country Offices

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SDG Financing Solutions

 

The financing needed to achieve the SDGs will greatly surpass all current development financial flows, but can be raised from the large amounts of (mostly private) investable resources available globally. In addition, domestic public resources, even in low income countries, can be increased or 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 towards meeting their emission-reduction obligations. An example is the Clean Development Mechanism.

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

Disaster risk insurance schemes cover—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/quality 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 entrance and activity fees for access to a protected area. Related-revenues can contribute to biodiversity conservation through retention by specific sites or protected area systems, revenue sharing agreements with communities, and earmarked transfers from the central government or agencies.

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 groups use lotteries as a means of raising funds for benevolent purposes such as education, health, preservation of historic sites and nature conservation.

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