In depth

Strengthening domestic resource mobilization: Tax for SDGs

Tax systems are central to sustainable development. In April 2024, Moldova joined UNDP’s global Tax for SDGs initiative through the signing of the Country Engagement Plan between UNDP, the Ministry of Finance, and the State Tax Service. The initiative aims to enhance Moldova’s ability to:

• Combat tax avoidance, evasion, and illicit financial flows
• Align tax and fiscal policies with national SDG priorities
• Strengthen institutional capacities within the Ministry of Finance and State Tax Service

Beyond revenue collection, taxation is being used as a policy tool to shape healthier and more sustainable behaviours. Health-related taxes – on tobacco, alcohol, and fossil fuels – are recognized globally for their dual benefit of reducing non-communicable diseases while creating new revenue streams for development. UNDP supports evidence-based policymaking in this area, helping governments advocate for and implement reforms that improve health and economic resilience.

Aligning public spending with development goals

Efficient and transparent public spending is key to sustainable development. Since 2018, UNDP has been supporting Moldova in advancing program-based budgeting and introducing spending reviews across sectors. These reviews help assess how public expenditures align with national priorities and SDG commitments.

UNDP supported pilot Public Expenditure Reviews in education, agriculture, and health. During 2024–2026, this work will be scaled up to additional sectors, including social protection. A revised Spending Review Methodology – integrating SDG impact and gender analysis – is being institutionalized to ensure that spending is not only efficient, but also equitable and impactful. This work is contributing to a more accountable and performance-based public finance system.

Unlocking private sector capital: SDG Investor Map

Achieving the SDGs requires mobilizing significant private sector capital. In Moldova, UNDP is working with the Invest Moldova Agency to develop the country’s first SDG Investor Map – a strategic tool that identifies high-impact investment opportunity areas aligned with national development objectives.

The SDG Investor Map draws on the 2022 Development Finance Assessment, which highlighted the need to diversify financing sources amidst underdeveloped markets and fluctuating foreign investment flows. By generating market intelligence on investable themes with strong SDG alignment, the Map helps bridge the gap between investor priorities and development needs.

Opportunities identified in Moldova will be featured on UNDP’s global SDG Investor Platform, connecting local development solutions with global capital and enhancing Moldova’s visibility as a destination for sustainable investment.

Integrated National Financing Framework (INFF)

UNDP supports Moldova’s efforts to strengthen policy, planning, and financing coherence through the development of an Integrated National Financing Framework (INFF). As a key instrument under the Addis Ababa Action Agenda, the INFF helps governments align financing policies with national development strategies and the SDGs.

Following the Development Finance Assessment completed in 2022, Moldova has been working to identify financing gaps and map out public, private, domestic, and international flows. UNDP has supported the Ministry of Finance and other institutions in setting a strategic direction for financing reforms, including:

• Strengthening budget alignment with national and SDG targets
• Designing integrated financing strategies
• Improving data systems for expenditure tracking and results monitoring
• Enhancing transparency and accountability mechanisms

The INFF also reinforces links across the portfolio – connecting tax reform, spending reviews, investment promotion, and green finance into one coherent framework for action. This approach ensures that development financing in Moldova is inclusive, evidence-based, and resilient to future shocks.

Promoting nature-positive finance: Biodiversity Finance Initiative (BIOFIN)

UNDP is supporting Moldova to develop its first National Biodiversity Finance Plan under the Global Environment Facility umbrella. Through the Biodiversity Finance Initiative (BIOFIN), we help assess financing gaps, analyse harmful subsidies, and identify new financing mechanisms that support biodiversity goals.

This work goes beyond conservation – it ensures that Moldova’s biodiversity priorities are reflected in national budgets, public policies, and private investments. By linking the National Biodiversity Finance Plan with the broader SDG Finance Framework, we are helping to embed nature-positive approaches into the heart of sustainable development planning.  

Knowledge that drives change

Effective financing requires strong institutions and skilled people. To support national capacity development, UNDP promotes open-access learning tools for public officials, partners, and development professionals.

Our e-learning modules on SDG budgeting, integrated national financing frameworks (INFF), and private capital mobilization are designed to equip practitioners with the knowledge to design, implement, and scale sustainable finance strategies.