UNDP releases new discussion paper on mobilizing private finance for sustainable developmentJan 24, 2017
Istanbul, Turkey – There is a general agreement that the Sustainable Development Goals (SDGs) cannot be achieved through public finance alone, be it the domestic resources or Official Development Assistance (ODA). What is then the rationale for investing private resources in sustainable development? What is the business case for private sector engagement? What safeguards need to be put in place?
Mobilizing Private Finance for Sustainable Development explores some of these issues and claims that private investment decisions in both the real economy and in the financial sector should move the world towards the aspirations set out in the 2030 Agenda for Sustainable Development. This means going far beyond philanthropy and voluntary corporate social responsibility, towards profitable inclusive and sustainable business models.
The paper reflects on the latest trends in mobilizing private finance for sustainable development, and lists a number of concrete actions can be taken, under three main categories:
- Establish an enabling regulatory environment for the private sector to invest in the SDGs;
- Introduce “Smart” public incentives to fasten the realignment of private finance to the SDGs; and,
- Foster change in company and consumer behaviours to transition to inclusive and sustainable markets.