The current financial system–emphasizing shareholder profits over social and environmental sustainability–has created vast inequalities and environmental degradation on a scale unseen in human history. The perfect storm of climate, economic and debt crisis has reached a tipping point as trust in governments and global institutions breaks down. The resulting fiscal crises, spiralling debt levels, opaque tax systems, and gaps between national budgets and public expenditures necessitate an urgent rethink of global financial systems and the benefits they confer.
At the same time, governments and private-sector actors have made enormous progress adopting greener, socially equitable and more sustainable practices. Despite flagging commitment to formal global compacts for achieving the SDGs, climate and environment targets, there is no going back to unsustainable financial models that concentrate wealth in the hands of a few while neglecting the majority of people and the ecosystems on which our lives depend.
With our global reach and local presence, UNDP acts as a multiplier of development resources, catalysing every development dollar for maximum impact in more than 170 countries.
UNDP is reducing the risk of investing in developing economies by facilitating policies and institutions that promote transparency, rule of law and accountability – fostering an enabling environment for capital to flow towards countries’ sustainability targets. UNDP is also partnering with governments and the insurance industry to expand insurance markets – scaling coverage to reach the most vulnerable communities and building capacity to manage financial risk.
For every US$1 of funding received between 2022 and 2024, UNDP promoted nearly $60 in public and private investments in sustainable development.
UNDP has contributed to leveraging:
Over $31 billion through support for sustainable sovereign debt issuances
More than $2 billion in additional tax revenue by increasing countries’ tax audit capacity through Tax Inspectors Without Borders
$5 billion in risk-capital commitments through insurance and risk finance
And aligning:
Promoted the alignment of $380 billion in private-sector investment through support for impact measurement and management
Promoted the alignment of $430 billion in public budgets through support for SDG budget policy and systems reforms
All our efforts to promote investments in the SDGs are in partnership with governments, the private sector, financial institutions and other actors. This report highlights the progress made in this regard.
The Sustainable Finance Hub leads and coordinates UNDP’s work on sustainable finance, and touches on all sectors where it operates. UNDP’s goal is to maximize the impact of development funding using our expertise and partnerships – bringing the right actors to the table to unlock large-scale investments in sustainable development worldwide.
From supporting country-led integrated national financing frameworks to aligning taxation systems with the SDGs, providing global standards for private-sector investment and de-risking investments in sustainability, UNDP is leading the global push for a more sustainable financial architecture.
