Time to accelerate: Capital mobilisation for the SDGs in emerging markets
This progress report details two years of capital mobilisation for the Sustainable Development Goals (SDGs) in emerging markets. It highlights the need for government and private investors to take action if the SDG financing gap is to be closed, and outlines strategies for scaling private investment and reducing investment risks.
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OVERVIEW
This progress report highlights the need to scale up investments in SDGs in emerging markets if the financing gap is to be closed. It outlines strategies for scaling private investment and reducing investment risks.
Meeting the SDGs and achieving a just transition
The progress report suggests that investors must integrate social with environmental objectives in all climate investments. Investment managers should work with and engage affected communities and key stakeholders in just transition initiatives. Furthermore, stronger regulation including definitions of SMEs or incentives toward formalising businesses is essential to encourage domestic capital to invest locally.
MDBs, DFIs, investors and catalytic capital providers
The report recommends mobilising investors through the creation of catalytic capital facilities and supporting initiatives led and developed by domestic stakeholders. MDBs and DFIs must unlock data and evidence and take more risks in the investment process, and domestic pension funds and PDBs must be incentivised to invest more in EMDE alternative investments.
ESG issues
The report highlights multiple environmental and social challenges including global just transition funding gaps and inadequate climate financing in emerging markets and developing economies, further widening the investment gap. Additionally, institutional investors are under-utilising their capital and must diversify their investments away from treasury bonds and consider alternative assets.
Recommendations
Investors can improve their understanding of just transition investment strategies through impact investing institutes’ initiatives in the UK and The Blended Finance Taskforce. Governments are encouraged to shift decision-making power in the development finance system, establishing robust and inclusive principles of cooperation and capital deployment.
MENTORS & CONTRIBUTORS
Things to learn
Actions to take
ESG issues
SDGs
SASB Sustainability Sector
Finance relevance
Asset Class
RELEVANT LOCATIONS
- Argentina
- Australia
- Bangladesh
- Belgium
- Bolivia
- Brazil
- Burkina Faso
- Cambodia
- Canada
- Chile
- China
- Colombia
- Costa Rica
- Côte d'Ivoire
- Democratic Republic of the Congo
- Denmark
- Ecuador
- Egypt
- El Savador
- Ethiopia
- Finland
- France
- Germany
- Ghana
- Greece
- Guatemala
- Honduras
- India
- Indonesia
- Ireland
- Israel
- Italy
- Japan
- Jordan
- Kenya
- Korea, Rep.
- Luxembourg
- Malaysia
- Mauritius
- Mexico
- Morocco
- Namibia
- Netherlands
- New Zealand
- Nicaragua
- Nigeria
- Norway
- Pakistan
- Panama
- Peru
- Philippines
- Portugal
- Rwanda
- Saudi Arabia
- Senegal
- Seychelles
- Singapore
- South Africa
- Spain
- Sri Lanka
- Sweden
- Switzerland
- Tanzania
- Thailand
- Togo
- Tunisia
- Turkey
- Uganda
- United Arab Emirates
- United Kingdom
- United States
- Uruguay
- Vietnam
- Zambia
- Zimbabwe
