(cont’d)
Summary Message #18. UNDP should build on its role in supporting green and SDG bonds while attaching less weight to ESG standards. UNDP has supported the development of SDG bond frameworks. As investors, regulators and Governments seek to address concerns related to ‘greenwashing’ and ‘SDG washing’, UNDP is well placed to support the development of frameworks offering enhanced verification and monitoring standards linked to SDG delivery. The added value of current SDG Impact work on standard-setting is unclear given that: (1) this is a very crowded playing field; and (2) current initiatives are geared towards the consolidation of standards. Summary Message #19. UNDP has provided leadership in several areas of green finance but needs to provide greater clarity in approaches to financing for clean energy. The organization has set a target to work with others to leverage finance to link 500 million people to modern energy by 2025. This is an ambitious target. Much of the increase will have to be achieved through off-grid and mini-grid solutions in Africa. UNDP should specify how – and where – it will contribute to wider efforts to remove bottlenecks to blended finance in these areas, including reform of regulatory systems.
This section assesses the UNDP strategic approach to SDG financing through its flagships, services and tools. The Sustainable Finance Hub, which encompasses the SDG Impact team and the Istanbul International Center for Private Sector in Development, provides an umbrella for delivery. Recognizing that some of these structures are still being rolled out and gaining traction following a partial consolidation of UNDP finance-related activities in 2019, the evaluation should be read as a preliminary assessment of work in progress. At the same time, the urgency of achieving the SDGs demands an emphasis on early delivery and the Strategic Plan period is to 2025. Moreover, while the Sustainable Finance Hub is of relatively recent origin, many of its activities are of longer standing and therefore more amenable to evaluation. In the spirit of a formative assessment, the current UNDP financing toolkit is considered against the concrete goals articulated in the Strategic Plan, 2022–2025. In addressing this task, it is recognized that UNDP operates as part of the wider United Nations system and through a complex web of networks, partnerships and delivery channels. The organization’s modus operandi cautions against the application of simple attribution metrics. By the same token, it is important that the exacting ’moon shot’ and targets set in the Strategic Plan are underpinned by credible performance criteria and backed by strategies for delivery. The UNDP financing toolkit is evaluated with reference to the three categories of finance outlined in section 5: domestic resource mobilization, international public finance and private capital.
5.1 The SDG financing strategy and implementation architecture The UNDP strategic vision for SDG financing Finding 6. The UNDP Strategic Plan, 2022–2025 set a bold ‘moon shot’ of promoting the investment of over $1 trillion of public expenditure and private capital in the Sustainable Development Goals, working with Governments, international agencies and the private sector to mobilize finance at scale. Building on themes from the previous planning period, the Strategic Plan sets a course for UNDP to 2025. As one of five core objectives, the Plan includes a target for the organization to support the investment CHAPTER 5. THE UNDP FINANCING TOOLKIT
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