How to use this toolkit

 

WHAT IS IT?

This toolkit provides guidance for policy makers and practitioners to critically review and operationalize financing solutions needed to implement sustainable development strategies. It is a compass to navigate across those solutions. It describes their potential, advantages, disadvantages, risks and characteristics. It profiles case studies and refers to external sources, including e-learning and advanced guidance material.

WHAT IS A FINANCING SOLUTION?

It’s a catch-all term that encompasses a vast universe of financial mechanisms, instruments, tools, and strategies. They can rely on public revenues and/or private contributions; be voluntary or made compulsory by the law; be guided by markets, or not; be short or long-term. This universe can be described by four - non-exclusive - financial results (each of which can be quantified but it is not necessarly defined by a cash flow) each solution would aim to achieve:

1. Generate or leverage revenues for the SDGs, i.e. any existing or innovative mechanism (e.g. impact investment vehicles, environmental taxes, etc.) that can generate and/or leverage financial resources for sustainable development.

2. Realign current expenditures towards the SDGs, i.e. any measure that can re-orient existing financial flows towards the SDGs (e.g. by eliminating energy subsidies and using these freed resources to build renewable energy infrastructures instead).

3. Avoid the need for future expenditures towards the SDGs, thus freeing up resources for investment in other areas, i.e. any measure that can prevent or reduce future investment needs by eliminating/amending existing counter-productive policies and expenditures (e.g. taxes on sugar content or tobacco).

4. Deliver financial resources more effectively, i.e. any measure or strategy that can enhance cost-effectiveness/efficiency, synergies and/or favour a more equitable distribution of resources (e.g. enterprise challenge funds, national climate funds, etc.).

HOW CAN I USE THIS TOOLKIT?

1. To expand your knowledge over the breadth of financing solutions available to implement the SDGs.

2. To assess the potential, advantages, disadvantages, risks and major characteristics of the financing solutions to be considered for my country’s strategy or project.

3. In national or sub-national design and planning processes, whereby a national or sector-specific strategy is drafted. It can be used to inform brainstorming and writing workshops.

4. To identify additional sources and learning material to operationalize these financing solutions.

HOW CAN I FIND THE SOLUTION I NEED?

Solutions ca be searched by:

1. The financial results they produce;

2. The financial instruments they rely upon;

3. The economic sector their use is most prevalent;

4. The Sustainable Development Goal(s) they contribute to.

FOR WHOM THE PLATFORM WAS DESIGNED FOR?

Public officials, policy makers and stakeholders in-countries that are interested into diversifying their sources of finance to implement the Sustainable Development Goals; and the consultant and researchers helping them in this task.

WILL THE PLATFORM BE UPDATED AND EXPANDED?

Yes, UNDP will work with partners to update and expand the number of financing solutions covered. This is a BETA VERSION. Feedback, suggestions and contributions from stakeholders and users are welcome at fs.sd@undp.org.