What’s new in innovative financing?

The adoption of the 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs) has, amongst other things, raised the issue of how the activities implemented to help achieve these goals will be financed. The sheer scale of the funding required is quite breathtaking: the United Nations (UN) has indicated that several thousand billion dollars (USD) will be needed on a yearly basis to achieve the SDGs (UNCTAD, 2014). Given that Official Development Assistance (ODA) falls far short of meeting these requirements, the core issue is identifying how to channel the major resources available worldwide into financing these goals. As implementing mechanisms that are able to effectively channel the available resources into sustainable development requires innovation, the term “innovative financing” is used when referring to specific mechanisms designed to promote the common good, whilst drawing on private actors and market instruments.This working document aims to take stock of the main innovative financing for development mechanisms based on a brief review of the literature and the debates at the workshop arranged by FERDI, the Institut du Développement Durable et des Relations Internationales (Institute for Sustainable Development and International Relations, IDDRI) and the French Ministry of European and Foreign Affairs on 20 March 2018.

Boussichas, M., et Nossek, V. (2018) "Quoi de neuf sur les financements innovants ?" Ferdi, document de travail P227, mai 2018